Why the stockmarket has got this crisis all wrong

Emerging markets and small companies may be better bets than the US and its technology giants, says Matthew Lynn.

Netflix © Chesnot/Getty Images
Netflix has done brilliantly, but will everyone stick around? © Getty
(Image credit: Netflix © Chesnot/Getty Images)

Netflix. The tech giants. The mega-corporations. And the US. The stockmarket has already decided who will be the long-term winners from the coronavirus crisis. It only takes a glance at the way prices have moved over the last month to see that a few firms, sectors and countries are coming out ahead, while others, such as small companies and emerging markets, have been pummelled.

But hold on. In truth, we still know almost nothing about Covid-19, and even less about its long term impact on the global economy. The market has been wrong plenty of times before and it looks to have got this crisis upside down as well.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.