Terry Smith, CEO of Fundsmith, says: "I suspect the current market reaction to the pandemic is explained by a simple analogy which relates to the virus itself. The Covid-19 virus is not fatal for the vast majority of the population.
“However, where it seems to be lethal is when it encounters someone with an immune system already weakened by age and/or pre-existing ailments. Similarly, what has increased the impact of the virus, or rather measures taken to counter it, on the economy and markets is that in this area it has encountered structures with weakened immune systems too...
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