Whitney Tilson: Virus Problem

Posted by admin on Wednesday, May 6, 2020

Whitney Tilson Money Quote saying in his newsletter that his friend Bill Ackman made what was a brilliant trade, betting against the markets due to Covid 19. Whitney Tilson said:
 

 

“Was it really so hard to see on February 19, only 37 days ago, when the S&P hit an all-time high and credit spreads were close to all-time lows, that the coronavirus might be a big problem? — Whitney Tilson

 

 

In this quote, Whitney Tilson seems to be criticizing the failure of many investors and analysts to foresee the potential economic impacts of the emerging COVID-19 pandemic in late February, when markets were still near record highs. By asking rhetorically if it was “really so hard to see” that the coronavirus “might be a big problem” on February 19th, Tilson implies the risks were discernible even that early if market participants had looked beyond short-term indicators.

The quote conveys Tilson’s perspective that despite bullish signals in financial data at that time, the global health crisis suggested economic turmoil lay ahead and this warranted more sobering assessments from the investment community. Overall, Tilson appears to be arguing that more foresighted analysis of underlying realities, rather than narrow focus on current price signals, was called for earlier in the pandemic given the known public health threats and their likely broader effects.

Categories: investment Tagged:creditwhitney tilson