Some Bad News From JPM: This Is What Happens After We Pass The Virus Peak
Yesterday, when giving an update on the global coronavirus infection curve, and highlighting where various nations currently reside on the curve, we said what has become conventional wisdom, namely that “with every passing day, the world – most of which is currently on lock down – gets closer to the infection inflection point, and as the updated “corona curve” chart shows, all the nations that were in the exponential rise phase (acceleration), are now moving into the stage of infection growth rate slowdown (accumulation), suggesting that a peak for most countries is now just a matter of time, at which point the number of new cases will start slowing down aggressively. This means that while US cases continue to soar, the light at the end of the tunnel is now visible.”
Some, such as JPMorgan’s delightfully permabullish quant Marko Kolanovic (who is so keen on giving flashbacks to his notes from x weeks ago, if not so much his “once in a decade” call to buy value/short low-vol stocks last July), ran with this data to its extreme conclusion, writing today that his models “have indicated that social distancing is working and that the apex of the pandemic will come sooner and require significantly less peak hospitalizations than projected by the models used by government officials at the time.”
In short, it’s all downhill from here on the corona-curve… literally, which is great news if that was all there is to it as every analyst-trader-amateur-epidemiologist jumps to conclude.
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