The S&P 500 reached a record high on Feb. 19, crowning a decade-long bull market and the United States’ longest economic expansion. Over the next 22 trading days, the S&P fell more than 30%, faster than ever before.
The speed of the fall revealed just how few market participants anticipated any immediate risk of a pandemic-induced recession.
Yet investors had plenty of warning. For over a decade, experts had forecast the high probability of a global pandemic and the resulting damage to human health and economies.
Still, when evidence of such a pandemic began to emerge, it was largely ignored. The markets waited until the forecasted risk was not just at our doorstep but in our house.
Scientists are increasingly raising the alarm about an even more economically destructive risk—climate change.
The Fourth National Climate Assessment , released in 2018, predicted that the U.S. economy could shrink by up to 10% annually if significant steps are not taken to rein in global warming.
Leaders in the world of business and finance have begun to recognize and warn corporations about sizable economic near-term risks from climate change.
Like the threat of a pandemic, these warnings […]
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