Alec Hogg: The benefit of having held your head when others lost theirs

Alec Hogg shares his rational perspective on the benefit of having held your head when others lost theirs, especially when it comes to investing.
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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).

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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