Rothschild: 'Markets may have overreacted' to coronavirus pandemic

Infection rates could fall "in weeks"

Markets "may have overreacted"| to the economic impact of the coronavirus pandemic, which while severe “may not last long”, according to Rothschild & Co.

In a March update on the Covid-19 outbreak the bank explained that the "fastest decline of any bear market on record", which has seen the highest volatility reading since 2008, could reverse when the rate of infection slows. UK Gilt funds lone positive performers in 'horror show' March Rothschild estimates that we are around "80% through the immediate downside in Western stockmarkets", which should account for a 20% to 40% decline in corporate earnings, and while we have "not yet seen the bottom of the market", some sectors "have been oversold". The bank said: "It is possible that ...