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