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Alec Hogg: Mr Market’s minor panic helps to focus where value really lies
Alec Hogg shares his thoughts on the US stock market and how Covid-19 will fast track benefits to future-ready companies - and punish those which aren't.
The graphic above, which shows how the three major US indices moved during yesterday's trading session, is instructive. It supports our assertion that reaction to the Covid-19 pandemic will accelerate benefits to companies positioned for a future world – and punish those which are not.
It shows how the 30 mostly "old world" stocks which dominate the Dow Jones Industrial Average were hit hardest on Monday by concerns about a possible delay in yet another US government stimulus package (the fourth) and prospects for another wave of Covid-19 infections. For most of the session, the Dow traded 3% down, with a late rally trimming the losses to around 2%.
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