The world is clearly heading on the steep downward slope towards recession due to the Covid-19 pandemic. The duration of this recession and, very possibly, global depression will be heavily dependent on the longevity of this crisis. This is consistent with findings in the study, ‘The Power of Bad: The Negativity Bias in Australian Consumer Sentiment Announcements on Stock Returns’ (Journal of Banking & Finance, May 2011), that negative market effects occur with bad news. The answer is clearly more bad news than governments are prepared to confront right now. Since the Covid-19 pandemic, US consumer sentiments have plunged vertically with almost zero slope and no sign of turning around any time soon.

Source: Economic Times April 16, 2020 17:03 UTC