Investors almost always expect markets to react to current disruptions the same way they reacted to similar disruptions in the past.
We’re seeing that today with the spread of the coronavirus.
Already, analysts and market commentators are citing what happened in 2003, when spreading SARS deaths knocked the market down, but stocks ultimately ended the year considerably higher.
The question “is this time different?” is generally shrugged off because investors believe they know what markets did then and what they’ll probably do now because of it.
But what if this time is different?
What if investors aren’t looking at the big picture and how both China and the world have changed? What if investors forgot that something else lifted the market in 2003 and had nothing to do with SARS containment?
Here’s a more objective look back and why this time could be different…