Coronavirus: Looking to the long term to avoid the teeth of the bear

Laying the groundwork for future bull markets

In assessing the threats posed by the coronavirus outbreak, governments, central banks, companies and investors must consider scenarios that range from short-lived disruption to a persistent threat with profound implications.

For now, all that is certain is the coronavirus is having a significant impact on the global economy and financial markets - in the short term at least. But what about the long term? Last week equity markets suffered their steepest falls since 2008 - prompting comparisons with the Global Financial Crisis: the event that has defined the past 12 years. The similarities should not be overstated though. The 2008 crisis was intrinsic to the financial system itself, not a response to an external threat. For all its potential impact, the coronavirus outbreak is a much more conventional crisi...