Donald Maxwell-Scott looks at the vastly different market reactions to the coronavirus outbreak and asks if the thus far robust (but inefficient) Chinese stockmarket is about to play catch-up
The continued spread of coronavirus globally has spooked markets, resulting in one of the largest falls in equity markets since the 2008 financial crisis. However, is the recent sell-off justified? While we are certainly not healthcare professionals, the market's concern is around the long-term economic implications of trying to contain the virus, rather than the consequences from catching it. As things stand, it could be believed the sell-off has been perhaps overdone, although we believe it might get worse before it gets better. Sometimes fear is the only catalyst the markets need t...
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