Benign April carries hidden dangers

Crazy March, described in my last blog post gave way to a benign April, so far. Like the weather global stock markets have been warm and sunny. According to AJ Bell Investcentre data from Refinitiv shows equities have sharply rallied from their lows on the 23rd March. The S&P 500 a more representative index of US stocks than the Dow …

March meltdown – How bad was it?

March was a very difficult month for investors, their advisers and fund managers and everyone is glad April is proving to be much better for global stock markets with a strong bounce in returns. However with the FTSE 100 trading at 5,773 as I write, the index of the UK’s largest companies is still well below its January peak of …

Markets like a cat on a hot tin roof

Cats are featuring a lot in this stock market sell-off. Type cast as the proverbial dead cat bounce, global markets are now showing real signs of life. However our investment cat appears to have stepped onto a hot tin roof as equities are jumping all over the place. Overnight Bombay’s BSE Sensex index rose 8.97% and Hong Kong gained 2.12%. …

Extraordinary Times

As investors we are living in extraordinary times. US stocks surged on Friday with the Dow Jones rising by 1,985 points, its biggest ever one day points gain. In percentage terms it was pretty impressive too, climbing 9.4%. The index spiked due to Trump promising stronger government action to deal with the Coronavirus in the US. Normally US markets are …

Global Stock Market Crash

In my last blog on the 5th March I explained the market rally may be a “dead cat bounce,” jargon used to describe a temporary increase in a stock or index in an otherwise falling market. The rally appears to have life in it but it proves to be an illusion as prices subsequently continue to fall. So it proved. …

Market Update

Last week turned out to be the worst for global stock markets since the financial crisis in 2008. This week there has been a rally on the back of investors taking the opportunity to tactically buy equities at low prices but more crucially with central bank and government support or at least the promise of it. The Dow Jones Industrial …

Coronavirus and Stock Markets

As I write at 4.40 p.m. the FTSE 100 index is down 3.04% and the Dow Jones down 2.27%. The more domestically focused FTSE 250 index is off 3.5%. The equity market sell-off this week has been sudden. Logically it makes sense with global economic activity and trade being hit hard and with it expectations of falls in corporate earnings. …