Cocooning

The effect of globalization is front and center during this perfect storm of Corona Virus Pandemic, Oil fights, and globally fluid capital markets.  The only industry benefiting from this panic is likely the 24 hour news.  

The S&P is down 30% in a matter of days.  Travel and Entertainment is locked down in a matter of days also.  It demonstrates how fragile the feeling of security can be - emotionally, financially, physically, and …. for some spiritually.  As Warren Buffet says - "You never know who is swimming naked until the tide goes out".   

I'm amazed at the distribution of attitudes about the rapid response by our Federal and State leaders.  The challenge of absorbing the various media bias (including social media) and the lack of understanding of statistics and numbers has contributed to both extremes of fear and indifference.  

Personally this has affected me in the cancellation of my trip to visit Dad in the Nursing home.  Susan and the girls also cancelled their spring break vacation to Arizona.  On the financial side - like others net worth (on paper) drops at least 20%.  Aside from the personal social distancing, this feels eerily like the great recession of 2007 and 2008.  Since my blogging only started in August 2009, only my manual journals (Spiritual and Financial) have any measure of my emotions and actions at that time.

Over the weekend, I decided to create my own forecast using the numbers from the World Health Organization situation reports.  In our data hungry world the numbers are suspect from even this source.  The two most important numbers are the daily rate of growth in new cases and the rate of growth in recoveries (and by default deaths).  Once again the human mind just has difficulty understanding the power of growth (April 16, 2012 Growth and Patience) and patience.  T.A. in our Vistage meeting talked about the dangers of nervous energy - on health, finances and relationships.  This time is no exception -  it is a time for patience and careful reflection. 

If this virus is growing at 30% daily (doubles about every 3 days) in USA (which is about what the W.H.O. shows since 3/1/2020) and the hospitalization rate is 20% of cases then we run out of hospital bed in the USA by about 4/13/2020 (assuming a discharge rate of prior admissions every 7 days).  The CNBC news states the doubling rate is every 6 days (about a 12% growth rate) and using that assumption my cryptic spreadsheet models a run out of beds by 5/21/2020.  That's not much to be encouraged about.  

Now the good news - if we can trust the Chinese Data -  the exponential curve of new cases peaks at about 16 - 24 days (but very dependent of population diligence in distancing).

This data seems to be consistent with the South Korean numbers (about 26 days) as it potentially is peaking.  The next few days will be critical to watch.

In Ohio there are 37 cases identified and 350 in testing.  The real answer about the risk of the virus is a local issue and community response.  For me - I'm cocooning.