Market Update – 19th June 2020
3rd June 2020
Equity markets across the world continued to recover from last week’s losses as investors focused more on improving economic data than company specific woes. Although fears still loom of a second wave of infections markets are optimistic of a V-shaped recovery across the developed world.
Continued talk that the US is considering another stimulus package, aimed at infrastructure projects, that could be worth a further $1trn, along with news here in the UK that a cheap low-dose steroid performed well in clinical trials, all added further positivity into a week when most stocks made gains.
Welcome news for pension and investment portfolios that have taken a battering during the pandemic.
However, investors might be surprised to see that equity markets in the UK have recovered by more than 20% from the lowest point in March. That means, technically, that we’re in a bull market! However, we are still have another 20% to go before we get back the highs we reached in January.
From a portfolio perspective; it really depends on what you’re holding. The portfolios we manage for our clients are now all showing gains compared to this time last year. Not bad considering what’s going on out there…