As part of our regular equity research process, we recently met with a management team running a global private equity firm. During the meeting, the executives made two very profound comments that have stuck with me.
We have had unprecedented moves in many markets over the last few weeks, and it’s important to remember unprecedented things happen in the market over and over again. While this situation is unique, the market behavior is not unusual.
The spread of the Coronavirus and the acceleration of cases outside China last weekend has been the catalyst to a swift market correction. There is still significant uncertainty over how the virus will continue to spread, which has certainly added to the speed and magnitude of the sharp correction we’ve witnessed.