It was a bumpy third quarter of 2020 for investors. But a good one for wealth creation as government liquidity pumps worked overtime and global asset prices flourished – despite a Covid-19 clouded outlook. On the world’s major stock market, energy stocks were the only ones to reverse (see below).
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The Nasdaq Composite index ended Q3 up 11%, taking the six month surge since the lockdown panic to 45%. A powerful endorsement of Kipling’s advice about keeping your head while all around you are losing theirs…
During the three months to end September, the S&P500 and Dow were up 8.5% and 7.6% respectively, building on their second quarter rebound. It’s instructive, however, that both indices have only now returned to where they began 2020. For the nine months as a whole, all the action has been in tech stocks with the Nasdaq rising 24% year to date.
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Yesterday’s performance by US stocks highlighted the reason for the rebound: liquidity. Share prices rose across the board on a belief that a political impasse is being overcome and both US parties will now support yet another stimulus package. The joys of having the world’s reserve currency.
For your attention today…
The third edition of our BizNews Digest PDF will be published this evening. We’ve created an alert service to drop you an email with the link to the latest edition as soon as it’s available. If you want to be sure to never miss the Digest, click here to sign up for the Alerts.
Webinar alert…
* In today’s Noontime Thursday webinar, Tim Modise and guests will dig into SA’s passenger rail disaster called PRASA. Register here: https://attendee.gotowebinar.com/register/1324111475714234383
* In this week’s Finance Friday, BizNews editor Jackie Cameron focuses on passive investing and how to simplify your choices. Panelists are Lisa Segall of GinsGlobal Index Funds and Magnus Heystek of Brenthurst Wealth Management.
For downloading…
* Tuesday’s webinar featured UK-based Saffer Sean Peche of Ranmore Funds on Value Investing. His insights were instructive.
Here’s the recording: https://www.youtube.com/watch?v=iGtmRjUYKMQ
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