Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP
Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Coronavirus crisis is exacerbating long-standing stock market vulnerabilities – bad news is no longer good news

  • Markets read the US Federal Reserve’s emergency rate cut as a sign of panic, resulting in last week’s correction, but stocks are still overvalued
  • Global growth fears have chipped away at market confidence, indicated in the drop in the US 10-year Treasury yield. Markets are now pricing in a recession

Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP
Traders work on the floor of the New York Stock Exchange on February 24. Last week, global stocks lost 13 per cent, wiping US$6 trillion off the value of equities. Photo: AFP
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Nicholas Spiro

Nicholas Spiro

Nicholas Spiro is a partner at Lauressa Advisory, a specialist London-based real estate and macroeconomic advisory firm. He is an expert on advanced and emerging economies and a regular commentator on financial and macro-political developments.