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.
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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%.
___STEADY_PAYWALL___
By contrast, many of the “new age” stocks which dominate Nasdaq rose yesterday, with the composite index ending pretty much all-square. For instance, while headlines proclaim “Stocks Close Sharply Lower…” most held in the BizNews Share portfolio ended the session higher with Apple up 3%; Netflix 3.7%; Adobe 2%; Spotify 2%, Cloudflare 5% Slack 5%; Microsoft 1% and TwoU 2%.
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The wave of money thrown at Covid-19-hit economies by governments provide a solid support base for asset prices generally. Mr Market’s reaction yesterday also suggests that instead of “buying the market”, investors are starting to become more discerning. Evidence, again, that the world’s new era favours the exponential stocks – companies focused on growth sectors.
For your attention today…
Webinar alert…
– At noon today I’m hosting the monthly update of the top-performing Biznews share portfolio, exclusively for Premium members. Please be sure to post your questions early. Register here: https://attendee.gotowebinar.com/register/707564726897634829
For downloading (a reminder)…
* The Biznews Weekly PDF which came out late last week has been very popular. It opens up a treasure chest of additional info – and is real easy to share. Here’s the link: https://bit.ly/3cgLwqo
* Episode Five of The Alec Hogg show features an interview with rags-to-riches financial services entrepreneur Magda Wiercyzka – well worth the investment of a half hour: https://iono.fm/e/926960
* Chapter Eight of the audiobook on the Cyril Ramaphosa biography unpacks the development of CR as a powerhouse negotiator as he created and built the National Union of Mineworkers: https://iono.fm/e/927460
* In case you haven’t yet managed to hear it, here’s the link to Episode One of the new Inside Investing podcast: https://iono.fm/e/926491
