Provocative? It’s a bit odd to name and blame a bubble on the virus, isn’t it? But I hope to show you why that makes at least some sense.

As readers know, I have been skeptical of the recent run-up in risk assets so far. In fact, don’t get me wrong, I am not bullish and am overall flat equities. I just want to lay out the case for how we skeptics could be wrong.

It is hard to believe that not even eight weeks have passed since the Coronavirus turned into a global problem. Perhaps it is the opposite principle to “time flies when your are having fun”. While the disease progresses at a frenetic pace, a part of you feels like the world is in suspended animation in the midst of the Covid nightmare.

What a weekend! Although we are still reeling from worsening infection statistics, the United States, in particular, has gone from a complacent unawareness and denial to full panic mode in the space of a week. That’s actually a good thing, although it’s going to be economically very painful. Many will lose their jobs. Many will face steep healthcare bills. It’s going to be bad. But it could have been a lot worse and we are finally doing something about it.