Markets are up so why is economic news still negative?
2020 has been a rollercoaster ride. In the first half of the year we had bush fires, a pandemic, social distancing, borders closing, job loses, and some business models decimated while others experienced tremendous growth. We’ve witnessed civil unrest in the US and geopolitical tensions between the West and China intensifying. In March, financial markets experienced one of the fastest pullbacks on record, but we’ve just seen an incredible rebound. There seems to be a disconnect between economic fundamentals and how the market is reacting at the moment.
So why has the market gone up, and will it continue? Lukasz de Pourbaix, CIO at Lonsec explains what has contributed to the rebound and the factors to consider when trying to understand how markets behave.
This information is provided by Lonsec Investment Solutions as a corporate authorised representative of Lonsec Research Pty Ltd who hold an AFSL number 421445. This is general advice, which doesn’t consider your personal circumstances. Consider these and always read the product disclosure statement or seek professional advice prior to making any decision about a financial product. You can access a copy of our financial services guide at lonsec.com.au
This video is provided by Lonsec Investment Solutions Pty Ltd ACN 608 837 583, a Corporate Authorised Representative (CAR 1236821) (LIS) of Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec Research). LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but LIS has not had any involvement in the investment research process for Lonsec Research. LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN 151 235 406. Past performance is not a reliable indicator of future performance. This is general advice, which doesn’t consider your personal circumstances. Consider these and always read the product disclosure statement or seek professional advice prior to making any decision about a financial product. While care has been taken to prepare the content of this video, LIS makes no representation or warranty to the accuracy or completeness of the information presented, which is drawn from public information not verified by LIS. The information contained in this video is current as at the date of publication. Copyright © 2020 Lonsec Investment Solutions Pty Ltd ACN 608 837 583