Recovery will still be made-in-China

IF, when China sneezes world markets catches a cold, then what happens when China is hit with coronavirus?

If we are guided by the Nasdaq and Dow, then we could conclude the world just shakes it off as markets continue to make new highs. The more cynical might suggest that this immediate market response is like the coronavirus where those infected show no signs of sickness for 14 days. Under this interpretation, it's time to take profits before the real impact hits.

Others will point to the tinge of racist hysteria that colours the social media stoked reaction. After all the response is in stark contrast to H1N1 swine flu which originated in the borderlands of the United States and Mexico, infecting more than 1,600,000 people in 214 countries with a 17 per cent mortality rate leading to more than 284,000 deaths. No borders were closed, and no flights stopped.