The same sentiment is shared by Ambrose-Evans-Pritchard, who wrote an article entitled "Swine flu deflation" in the Telegraph of UK. He argued that investors are underestimating the possible repercussions:
Over the last couple of days I have been deluged by notes from City analysts and economists suggesting that H1N1 avian-swine flu poses no great threat to the global economy because the authorities showed during the 2003 SARS epidemic in Asia that outbreaks can be contained.
This is a misreading of the threat we face.
SARS is a coronavirus. It is extremely hard to catch. Just 8,000 people were infected worldwide during the entire epidemic (10pc died).
Today's H1N1 outbreak is an influenza virus, which is far more contagious.
Dr. Keiji Fukuda, the WHO's assistant director-general, said it is already too late to stop the spread of the disease. “At this time, containment is not a feasible option.
The markets' complacency will be due to successful containment of early cases in the US and Canada as well as the apparent fall-off in the fatality rates in Mexico. Yet, nobody should pre-judge the virulence of this developing pandemic. All we can hope is that we may be lucky and the virus may indeed prove mild - like the Hong Kong flu in 1968 - or burn out altogether as it mutates.
However, one may say that there is no clearer sign of the strength of the present stock markets than their refusal to be intimidated by the danger posed by the Swine Flu. Indeed, who's afraid of the Swine Flu?