Earlier quoted context omitted.
I bought some put options on the S&P index a couple weeks ago.
Won’t help, if response is infinite QE and monetization of government debt: Dow 1,000,000, here we come! I was thinking deep out of the money gold calls...
A worldwide pandemic would primarily exert its economic effect through supply shocks. The productive capacity of the economy genuinely shrinks. Stores can't open during a quarantine. Sick workers can't show up at the office.
A pandemic might have second-order demand shocks, particularly if panicking investors flee to quality. But there'd still be a genuine contraction in real and potential GDP, most of which would get absorbed by contracting corporate profits. Monetary stimulus can't route around those constraints.