Most people have heard of the Great Wall of China. It spans more than 3800 miles in length and has existed for almost 600 years. It includes other barriers, like trenches, rivers and hills are added in, the total length of the defensive line comes to 5,500 miles. It was built for defensive purposes and has a history of being successful in repelling most invaders.
Yet today, this wall is useless against an invader that started behind the wall and now has spread around the world at an alarming rate. As the numbers of infected and dead soar exponentially with the Wuhan Coronavirus, its impact is being felt not only among those in the World Health Organization (WHO), it’s beginning to impact the world’s financial markets.
Bloomberg macro strategist Mark Cudmore noted that this ‘black swan’ event is exposing the fragilities, and vulnerability, of financial markets that long ago disconnected from past fundamental foundations.
Mr. Cudmore stated further, “Markets are driven by narratives, and the virus outbreak that has now spread in four continents is finding investors at a particularly vulnerable time, with valuations in many risk assets arguably stretched and volatility near record lows…Less than two weeks ago in this column, I argued that only a black swan event would see expensive stock markets correct lower, since there was no obvious negative catalyst on the horizon. This outbreak has the potential to be that kind of event.”
As of this writing, WHO has declared this a “global health emergency” and the Dow Jones Industrials responded in a drop of 600 points and may go lower.
Not knowing how this coronavirus situation will evolve, it’s already impacting global markets as major airlines announced today stoppage of flights to and from China. This as Chinese authorities admitted that the transmission and death counts are increasing.
The virus has shutdown major parts of the Chinese economy. China has already extended the Lunar New Year holiday to prevent the spread of the virus. The holiday, which sees hundreds of millions of people travel around the country to visit family, was due to finish on Thursday this week. Meanwhile, restaurants and other public spaces are closed, and public events canceled. This all happening at a normally major consumption period will not only hurt domestic growth, but global companies with business in China will be impacted as China is the growth engine for many economies.
In Luke 21:10-11, Jesus tells his disciples regarding signs or events pointing to the Last Days, “Nation will rise against nation, and kingdom against kingdom. 11 There will be great earthquakes, famines and pestilences in various places, and fearful events and great signs from heaven.”
Pestilence: not a word often used in the English language. Pestilence means a deadly and overwhelming disease that affects an entire community. The Black Plague, a disease that killed over thirty percent of Europe's population, was certainly a pestilence.
Pestilence is also the name of one of the Four Horseman in the Book of Revelations 6:7-8.
While some will try to say that this latest coronavirus is a fulfillment of that prophecy, they would be wrong. Jesus simply states that these signs are the beginning of “birth pangs” pointing to His return.
So, whether it’s the Wall of China or Wall Street that this or any other virus attacks, let it remind you that Jesus Christ is coming again!