• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Latest

COVID-19 Unmasked at Last… We’re the Sceptics Right?

Like 0

By Nick Hubble, Saturday, 06 June 2020

On Wednesday, my mum was interviewed by her local newspaper as she left IKEA. ‘What brings you to IKEA during a time like this?’ the journalists asked her. The implicit question was how she could be dumb enough to risk her life for furnishings.

She gave quite an answer, which I don’t know how to translate from German…

During a lockdown without precedent, my mum managed to move home from Austria to Germany. She drove to Germany, went house hunting, bought a house, and moved her belongings from one of the worst hit regions of Europe. All of this across borders that were ‘closed’. She also bought furniture, opened bank accounts, and did everything else that goes with moving house to a new country. All without wearing any masks or taking precautions. All during a lockdown.

She also took the time to explain to any mask-wielding passers-by that COVID-19 can now be spread through the ears, just to highlight the absurdity of it all.

And she’s not the only one ignoring COVID-19 and the lockdown rules. Here in the UK, you’d be hard pressed to find a journalist or politician who did follow the rules. There are more bricks and glass houses in UK politics than at a Black Lives Matter protest march.

Between the six people living in my home right now, international borders have been crossed about eight times since the lockdown began. Between some of the worst hit areas such as Spain, Tokyo, and the UK, too.

Most outrageous of all to COVID-19 enthusiasts, we’ve got a newborn at home!

With ‘unsubscribe’ spiking on the Daily Reckoning Australia list faster than infections during any COVID-19 outbreak, I better explain myself…

What if the COVID-19 sceptics were right?

I’m not much of a COVID-19 sceptic. At least, I wasn’t until this week.

But what if the COVID-19 sceptics were right? What if it really is barely worse than the flu?

If you thought we’d settled that, you’re right. We have now. It really isn’t worse than a severe flu outbreak after all.

A Stanford meta-analysis of 12 studies which looked into COVID-19 concluded:

‘Seven of the 12 inferred IFRs [Infection Fatality Rates] are in the range 0.07 to 0.20 (corrected IFR of 0.06 to 0.16) which are similar to IFR values of seasonal influenza.’

The US’ Centers for Disease Control (CDC) has their best estimate for IFR below 0.3%.

Oxford University now has ‘a presumed estimate for the COVID-19 IFR somewhere between 0.1% and 0.41%.’

The assumed IFRs that justified lockdowns? Imperial College’s and the CDC’s initial projections were about fourfold higher.

Here in the UK, the government’s panel of scientists claim the R rate ‘could be as low as 0.5 outside of hospitals’, with most infections coming from medical settings, as the Daily Mail summarised it.

The irony being that hospital patients were sent out of hospitals to keep them available for the pandemic wave that never materialised, thereby spreading the disease to places like care homes, where COVID-19 really was deadly. Several vast hospitals set up in record time saw next to no patients, but did exacerbate equipment shortages instead.

According to Jim Rickards, the recent market crash we’ve witnessed is just the beginning. A total financial collapse might be next. Learn how to protect your savings and investments before it’s too late. Download your free report now.

Jason Kenney, premier of the Canadian province of Alberta, was brutally honest about it all:

‘For most Albertans, the risk of death from other pathogens, accidents, and traffic fatalities is actually higher than it is for COVID.’

Smarttraveller.gov.au promptly issued travel advice: ‘Do NOT go to Alberta!’

OK, that last bit isn’t true. COVID-19’s risks are actually low in Alberta because Albertans are unusually immune to coronaviruses…

This week will be remembered as the one which unmasked COVID-19. Where we began to laugh nervously about the whole thing, within a metre of each other. Because the actual data has replaced models and analysis has replaced assumptions.

The good news is that the scientists which recommended the lockdown can claim even worse shemozzles have since emerged. Over the last week we’ve also discovered that COVID-19 medication effectiveness data was provided by some sort of scam firm which employed an adult content model, the (scientific) models used to analyse the pandemic data were mathematically flawed and not vetted all along, and China and the WHO colluded to withhold the real data early on.

All around the world, the actual data is streaming in. And it’s upending what we assumed about COVID-19. The assumptions which justified the lockdowns that destroyed our economies.

Not that the data is proving very accurate just yet. I mean governments can’t even count dead people properly. The Financial Times explained what happened in Spain recently:

‘This week Spain reported what should have been cause for huge celebrations: according to the official coronavirus statistics, there were no new deaths in the 48 hours to midday on Tuesday.

‘Yet on the same day, at least two regions — Madrid and Castile-La Mancha — reported 17 deaths from the virus between them. The health ministry insisted it had not been informed of any death that had taken place in the previous 24 hours.

‘“The figures are driving us crazy,” said Jeffrey Lazarus, head of the Health Systems Research Group at the Barcelona Institute for Global Health.’

You and everyone…

[conversion type=”in_post”]

The coronavirus crisis isn’t over

The UK news is being lambasted for publishing a chart which shows UK COVID-19 deaths were higher than in the entire EU for a particular day. Only it wasn’t even close to true once you adjust for such a long list of data quirks that I can’t list here.

Despite data delusions, the conclusion is already getting through. The lockdown was a mistake and COVID-19 is about as dangerous as a severe flu, especially for most of the population. Those truly at risk are identifiable and could’ve been protected. They were in a few places like Florida, where they are an especially significant part of the voting population…

But don’t feel relieved. The coronavirus crisis isn’t over. What if the lockdown was more dangerous than COVID-19? And still is?

This idea has been around for a while now. But it struck home when a body struck the pavement outside my flat a few weeks ago.

In fact, the main reason the in-laws living in my home now decided to end their post-travel self-quarantine early, before moving in with us, is that one of us saw the suicide unfold. The distress led to an unscheduled break in the quarantine rules, which made the whole exercise pointless thereafter.

So, don’t go telling me the lockdown isn’t dangerous. I’ve seen its costs play out firsthand.

And those of you who point to excess deaths figures as proof of COVID-19’s danger are missing the point. Excess deaths don’t separate COVID-19 casualties from deaths caused by the lockdown. It’s not the right measure.

The harsher the lockdown, the higher the share of deaths from the lockdown as opposed to COVID-19 fatalities. And, worst of all, the more people who die from the lockdown, as opposed to COVID-19, the more justified the lockdown looks under an excess deaths measure! It’s a self-justifying policy that kills people.

Now, if you’d asked me four months ago which branch of science is least credible, I’d already have chosen epidemiology. Why is a long story, which involves explaining why economics isn’t a science. But I don’t think anyone needs to hear my explanations anymore.

Most extraordinary of all, we still don’t really agree on who got it right, even with the results largely in. We still don’t know whose policies to follow and each nation’s policies are still wildly divergent.

In Florida, they prioritised care homes to save hospitals. In the UK they prioritised hospitals at the expense of care homes.

In Sweden and the UK, they used the same science, according to the UK’s disgraced science Professor Neil Ferguson, to come to opposite policies. Professor Ferguson advised the UK’s lockdown response, while taking a decidedly Swedish response personally when it came to visiting his mistress…

Sweden’s top scientist recently apologised for the lack of a lockdown like the one in neighbouring Norway. But locked down ‘Norway wonders if it should have been more like Sweden’, according to the UK newspaper The Telegraph…

Anyone who thinks science provides certainty must be struggling…

But, unless you’re in the category of people at risk of COVID-19, I hope you now know you don’t need to hesitate before you go rioting and looting in protest of police brutality in Minneapolis this weekend…

Until next time,

Nick Hubble Signature

Nick Hubble,
For The Daily Reckoning Australia

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Nick Hubble

Nick Hubble found us at Fat Tail Investment Research in 2010 after a stint inside Wall Street’s most notorious bank, Goldman Sachs, during the 2008 GFC. That’s where he saw the true nature of the investment banking business. Since then, he’s been the editor of the Daily Reckoning Australia and the UK-based Fortune & Freedom and Gold Stock Fortunes.

He’s delighted to work as Investment Director and Editor for Jim Rickards’ Strategic Intelligence Australia. Here he helps turn Jim’s big-picture views into specific actionable advice and ideas for Australian investors.

Nick’s Premium Subscriptions

Publication logo
Jim Rickards’ Strategic Intelligence

Latest Articles

  • America on a War Footing: Implications as US Mineral Strategy Turns to Africa
    By James Cooper

    Geologist James Cooper examines the potential implications of America’s heavy focus on West Africa. Why is the US becoming deeply involved here? And what could the consequences be?

  • The biggest quarter on record for this share
    By Callum Newman

    We can see why the stock market didn’t react much to the RBA holding rates steady last meeting. Everyone expects rates to go down. It’s just a question of when. Fixed rate loans, and refinancings, are withering away as the market positions for more rate cuts. This is what you and I want to see as investors…

  • The US$2 Trillion Stablecoin Tsunami
    By Charlie Ormond

    These developments could transform the US$250 billion stablecoin market into a US$2 trillion juggernaut within years.

Primary Sidebar

Latest Articles

  • America on a War Footing: Implications as US Mineral Strategy Turns to Africa
  • The biggest quarter on record for this share
  • The US$2 Trillion Stablecoin Tsunami
  • Trump Sparks Rare Earth Rally
  • Copper Breaks Out: Are You Positioned?

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988