The more I look at various share price charts, the more I see March 19th seems to have been when everything got really cheap. Since then, we have actually seen quite an encouraging rally. Is this based on an improving outlook, or are people just tired of worrying? “Panic” is an exhausting state of mind. It can’t be maintained for long because it burns up so much fuel. A quick look at the charts below shows an interesting link between google search terms for “Coronavirus” and the year-to-date FTSE All-Share performance. Correlation does not equal causation, and I’m not drawing any strong conclusions from the below. It is a surface level comparison, but it does fit the idea that people have got tired of worrying. Google trends for “Corona”: FTSE All-Share year-to-date performance: It does seem like Corona panic and market selling both peaked in mid to late March. That kind of high pressure environment can lead to all kinds of unfortunate behavioural biases. While those conditions have passed for now, it is worth considering your plan of action for when/if another Corona-inspired bout of…
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