Wikus Marais: Markets panicking because of how Govts reacting to COVID-19, not because of virus itself

In this segment from the latest episode of Rational Radio, economist Wikus Marais present the most cogent explanation you'll hear of why asset prices are plunging on the coronavirus. He explains why the mortality rate of under 2% has nothing to do with it – but that the reaction of Governments to the spread of the virus is a threat to economic growth and thus to business. It's currently a race between the creation of a vaccine and the airborne spreading of the latest nasty to mutate from animals to mankind. – Alec Hogg

Let's Wikus Marais into the conversation now about Coronavirus. Here, in South Africa, we're dealing with quite a lot of stuff. We have been talking on this program with Gary and Andy Cronjé. They're school teachers from Durban and they've been bringing us up to date as things develop. The last time we spoke to them last week, they said that things seemed to be getting back to normal in China. We saw in Business Day this morning… I don't know if you saw the big advert from the Chinese Embassy, which shows that the infections in China are reducing now. Certainly, the deaths are reducing as well so it's almost like China's got it under control but the world is panicking. Mr. Market is very worried about what's happening. I've heard the story, but is this justified?

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