Posted: 04 / 06 / 2020
With the press seemingly fixated on bad news, stock market recoveries seem to have slipped under the radar somewhat.
Investment markets globally suffered significant losses in February and March this year. The FTSE 100 falling 33% and the main US index, the Dow Jones, falling by 37%. Obviously spooked by Coronavirus and its impact, it was hard to predict what would happen next.
So, what has happened? Well the FTSE 100 has recovered almost half of its losses to date (47%) and the Dow Jones has revered nearly 60%. Across global markets, April and May 2020 have seen some of the highest gains on record. Turning to the technology-focused US index of the NASDAQ, this fell by just over 30% but has amazingly recovered 84% of its losses to date and is higher now than this time last year.
Stocks such as Google, Amazon, Tesla and Netflix represent what a ‘new normal’ may look like and have benefitted from investor belief.
The trust shown in the NASDAQ listed companies shows that we believe technology-based companies will lead the way in the recovery. Stocks such as Google, Amazon, Tesla and Netflix represent what a ‘new normal’ may look like and have benefitted from investor belief.
Good news rarely gets a look in these days but the recovery of investment markets to date certainly should. There is still a long way to go to get back to the previous level but progress is being made in the right direction. Our previous advice to hold onto investment positions and not to panic is showing the right results.