Market Update: Investors Optimistic as Global Economies Reopen

Jun 18 19:06 2020 Print This Article

The quickest bear market in the history of the US S&P 500 turned into the best 50-day bull market rally in history in May. By market close on June 3, 2020, the S&P 500 Index was up 37.7% from its March 23, 2020 low.

This bullish investor sentiment has been based on the continued decline in new coronavirus (COVID 19) cases in Europe, North America and Asia, and the ongoing reopening of economies worldwide. Meanwhile, global central banks and policy makers continued to provide stimulus and liquidity to the financial markets and global economies. 

Where do we go from here?

The next two quarters should reveal whether the market’s speed of recovery is aligned with reality, or not. For now, we remain cautiously optimistic. 

While equity markets and all WealthBar portfolios have surged rapidly in the past two months, there remains many uncertainties regarding the pace of economic growth. All signs suggest we’ve entered a global recession, yet investors appear optimistic as economies across the globe have begun reopening. It could take some time before global supply chains, trade, travel, employment, and consumer spending return to pre-pandemic levels.

Read More

About Article Author

WealthBar

WealthBar is Canada's first and only full-service online financial advisor. They help thousands of Canadians save time and money with online personal financial planning facilitated by real financial advisors and offer professionally managed investment strategies that are a faction of the cost of traditional mutual funds while also offering better diversification

Related Items

Market Update: Investors Optimistic as Global Economies Reopen

The quickest bear market in the history of the US S&P 500 turned into the best 50-day bull market rally in history in May. By market close on June 3, 2020, the S&P 500 Index was up 37.7% from its March 23, 2020 low. This bullish investor sentiment has been based on the continued decline in new coro ...

Top Funds' Activity in Q1 2020

Jason Orestes of The Street reports Amazon is clearly what hedge funds are betting on these days:Amazon has been a major beneficiary of the Covid-19 chaos, and hedge funds have taken notice.The fastest bear market in history saw a 30% plummet followed by a rapid 30% rebound. But there has been a l ...

5 from 5i: Shopify displaces RBC to become Canada's most valuable company

Weekly stock market update & five stock related articles we thought were a must-read this week ...

How To Buy Bonds

Over time, bonds should find a place in your portfolio. How much you should have will definitely depend on your investment strategy and appetite for market swings. If you are in the market for bonds, you can get in on ... Read more ...

“E” vs “SG” in ethical investing: how sustainable is mollification-by-cherrypicking

In the great game of whack-a-mole that is capital raising in Canada’s oil patch, it must be frustrating, for those whose full-time job when there isn’t a global pandemic is whacking the moles of ESG criteria on which they feel their companies may be vulnerable to criticism and hence subject to ...

Episode 4: The Lights are Out in the Travel Sector – Will They Ever Go Back On?

Many sectors have been impacted by the pandemic, but none more completely than the travel sector. One week is was functioning at full capacity, and then the next the lights had completely gone out, or so it seems. When they go back on, they will shine on a completely different sector, one is which ...