Investors Need to Reprice Risk Amid Virus Spread: State Street

The transcript discusses the initial complacency regarding the spread of a virus, which was initially contained in China. However, exponential growth outside China led to a repricing of risk. The market reactions included a sell-off of Asian assets, while Western markets remained stable. Currency movements were limited, with gold acting as a haven. The discussion also covers potential recovery shapes, suggesting a non-V-shaped recovery with economic losses that cannot be recouped.

What factors contributed to the initial belief that the economic impact would be manageable?

How has the perception of risk changed in relation to the spread of the situation outside of China?

In what ways have traditional safe-haven currencies reacted to the current economic situation?

What does the speaker suggest about the potential for a V or U shaped recovery?

What uncertainties does the speaker express regarding the future economic recovery?