The Stock Market Has So Far Underreacted to the Coronavirus Crisis

I am writing these words on May 4 in anticipation of them being posted on May 12. I tell you that because stockprices have been changing rapidly of late and it is possible that the main point of the article — that stock prices have fallen less than they should have in response to the onset of the coronavirus crisis — will no longer apply.Q1 2020 hedge fund letters, conferences and moreThe CAPE level was at 32 at the onset of the crisis. It is at 26 today. That’s a loss of less than 20 percent. It’s a significant loss. But not a stunning one. Given the size of the loss that we may see by the ti…

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