Do not be fooled in to thinking, that everything is now OK, far from it. What we are seeing is the market hedging their bets on the recovery as restrictions are lifted. It will all be about the economic data over the coming months. This will be a slow long recovery, first,we need to see how many businesses fail and second the effect on the larger company from the shutdown. We will have better idea during the September reporting season.
Grow Your Wealth – Market Wrap 05/06/2020
We could see our market move up another 5%, however we are still cautious on which companies we buy given that the bond market does not seem to be supporting the market at present. This could indicate a possible retest of the recent lows. Click for full article