Thursday, 11th June 2020
What a record 50-day rally tells us about what happens next….
It is always worth reminding yourself from time to time that markets are essentially forward-looking….
They tend toward pricing-in what investors expect to see next rather than what investors have already seen go through….
- What’s gone through….
Right now, large parts of the First World are experiencing three crises simultaneously….
There’s the health crisis – with the COVID-19 virus at the root of it….
There’s an economic crisis – created by the combined efforts of the virus and global government….
And there’s a social crisis – driven by the Black Lives Matter protests (you know you’re deep in crisis when boneheads from football hooligan ‘firms’ are rebranded as ‘defenders’ of the nation’s heritage)….
But you don’t need to worry about any of this stuff. Relax yourself, as Roy Keane might say. It’s all going to turn out great….
That’s the message being relayed by the markets….
- Markets weren’t always so relaxed….
Sure, markets weren’t very relaxed back in March when the COVID-19 virus descended on the world and its inhabitants like some alien invader with bad intentions….
Stock markets worldwide went into freefall….
Looking back through the notes I take daily on events in the world of money, it really did feel like markets might not pull-out of the nosedive….… Click here to read more