The Coronavirus Contraction

| March 18, 2020

11 Minute Coronavirus Contraction Video From Economist Brian Wesbury

Please check out this 11 minute video from Economist Brian Wesbury below. Here are some bullet points he makes:

-The shutdown in the US will lead to a contraction or maybe a recession, but the economy should make up the ground in the 18 months following

-Assumptions we hear about are modeling worst-case scenarios

-Stock Market is pricing in worst-case scenarios as well. Usually the markets reverse course ahead of the general economy

-Virus cases tend to ramp up quickly but also fall quickly as witnessed by past historical outbreaks as well as the current China/Korea case with Coronavirus

-The Fed has cut rates to zero and is injecting massive amounts of stimulus

-This is NOT 2008