Ebola vs. Stocks
A little explainer:
VIX measures volatility in the stock market. Volatility is bad for stocks and will cause the market to decline as investors sense a growing panic. (Stocks are down about 10% since Ebola became big news late in August).
SG Pandemic Indicator measures the newsflow for the Ebola outbreak. Spread of the virus = more news stories = higher indicator.
Combining the two measures produces an interesting correlation… are investors pulling out cash in anticipation that the outbreak’s worst is yet to come?