Masking Forward. And The Risk of Denial.

Financial markets reacted sharply today with a sell off as news surfaced of a pickup in new cases of Covid-19 infections and the dampening impact it may have in the reopening of the economy.

I think it is an overreaction.

The greater incidence of new cases may well reflect enhanced testing capacity. The trend on the number of deaths continues to be downward. Furthermore, we know more about the illness and are better prepared.

That said, a real increase in infections may be at work, and the reopening of the…