This week’s economic news will be light until Friday when we will have a flurry of reports on retail sales, imports and industrial production. Meanwhile the coronavirus dominates the news cycle, but it too seems to be fading a bit as investors shake off the worry of its effects on the world economy.
Like most Black Swan events, those that are unpredictable and unpredictable, their impact fades rather quickly. The ones that don’t are those whose results are unforeseeable but with the virus there is a progression, a peak, and then an end. Investors are starting to believe they understand the impact at this point and are now prepared.
Of course, they could be wrong but as a group they are pretty good at these kinds of things.