“Infodemic”: an over-abundance of information, some accurate and some not, that makes it hard for people to find trustworthy sources and reliable guidance when they need it.
Understanding the abundance of information we’re exposed to these days and how it is, proverbially, jammed into our (multiple) screens might have at least something to do with the level of panic seen of the current novel Coronavirus .
Just as China didn’t consume nearly as much of Australia’s iron ore as it did when SARS hit in 2002-03, or send as many tourists and students Down Under, the world didn’t spread information (good and bad) through platforms such as Twitter and Facebook… they didn’t exist.
Factors as large as Coronavirus are under-worried about until they are over-worried about – a vaccine may become available sooner and then it’s on to the next “bad thing.”
The constant news feed has certainly translated into financial markets taking a hit, almost -10% across the Asian region.
To be fair, the level of instability is already apparent and is no doubt a cause to recent increase in volatility. However, having suggested for some time the level of volatility over the coming period to be more pronounced – we just don’t know from where this volatility comes, this time an “infodemic” of sorts.
In light of future growth, preservation is the number one priority.
Keep a level head, stay the course.