Well, it seems to be the time for nostalgic songs, so why not!
After another solid day in the fight against the virus it seems (stats tend to be less accurate on a weekend for some reason they say, but let’s keep it positive), investment and sharemarkets have reacted very positively, with the US market finishing over 7% up last night and global markets reflecting this also.
The reaction is based upon the hope that countries are seeing a levelling out and, in some instances, a decline in cases of the virus and therefore the hope prevails that countries health services can cope and economies can also soon return to ‘normal.’ One possible hiccup in the sharemarkets’ recovery, may be with the fact that many companies (when they are allowed to report again) will be showing poorer sets of figures, which seems inevitable in many sectors and there is a feeling that an element of this is still be factored into share prices, time will tell, although let’s face it we have already seen a substantial correction to cater for this.
From a personal viewpoint, for the companies which emerge from this in-tact, it will just be a matter of time before they are back to the business of making profits again (I accept that for some, such as airlines, this may be a longer journey, pardon the pun!) and in which case their share prices will rise once again, probably at a pace.
For many investors who have a cautious portfolio, sharemarket growth may not seem to be the Be all and End all for their savings, but it is a very good gauge of investor sentiment and confidence as a whole and, it is fair to say that if sharemarkets are doing well, then so is the wider economy and in turn, governments through their tax take, hence the bond markets are better stabilised and inflation and interest rate trends better controlled. So it becomes a well balanced diet overall for investments!
I’ll keep my eye on things and report on matters where and when I hope it is helpful, but if anyone would like a chat, or would like to see certain information discussed and more links to articles provided, please let me know!