The Covid crucible: A play in three acts
Tracking the crisis in real time delivered remarkable lessons on how it was different from previous upheavals
Add BT as a preferred sourceASWATH Damodaran, a professor at New York University, determined early on not to treat the Covid-19 crisis like previous market shocks. As the pandemic unfolded, he could see how it was developing and realised it was having the same three-stage effect on investors as previous financial upheavals.
"First you lose perspective. Why? Because in the middle of chaos, things are melting down," he explained in his virtual presentation, "Crisis as Crucible".
"The second thing that happens is you lose faith in (the valuation tools) that you thought mattered... And the third thing is you outsource your thinking."
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
