We have been so proud of ourselves for creating a global economy, maximizing consumption while minimizing the cost of producing them. Industries like shipping, transportation and shipping etc have been built around this.
Invariably, the stock markets have also been priced around this model. But, the way the world has been shifting politically and logistically since the Covid outbreak, does not seem to support this model. China and Europe are big wildcards for different reasons. Especially, China. For example, moving production outside is not easy for both the production and consumer model. It will all translate to higher cost of things on top of the high inflation. There are many such ramifications of what is happening around globally.
What aspects of these are already factored in? If things get worse, how worse could it get to?
EDIT: my question is more in the context of the impact of this on the stock market and financial costs.
Leave a Reply