Stock markets have declined markedly this week, as it became clear the coronavirus (or “Covid-19“) has not been contained within China; outbreaks in Italy and Iran seem to make it more likely the virus could spread around the world.
Stock markets have continued to reach new highs over the last twelve months, even though forecasts for economic growth were reduced due to the impact of the US / China trade disagreements and the Brexit saga. Chart 1 shows how the FTSE World Total Return index has progressed over the last decade.
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