Global economy is in recession, but some investors are having fun

The S&P500, an index of the biggest companies trading on the New York Stock Exchange, reached near-record levels on Tuesday, BizNews Premium partner Wall Street Journal reports. The “remarkable rebound” of stock prices comes after Covid-19 sent shockwaves through the economy and financial markets, says the WSJ. It’s “extraordinary when you think second-quarter 2020 was the deepest quarterly contraction we’ve seen” in the US and European economies, Tomas Hirst, European credit strategist at CreditSights, is quoted as saying.

Even more extraordinary, perhaps, is that the performance of the S&P500 is being powered up by a handful of stocks. As independent financial advisor Debbie Netto-Jonker, who divides her time between Australia and South Africa, pointed out at the weekly BizNews Finance Friday webinar. Netto-Jonker, founder of Netto Invest and Netto Capital, shared a fascinating graph comparing the ‘S&P10’ vs the ‘S&P490’.

Those stocks driving the S&P500 happen to be among the key holdings in the BizNews Share Portfolio. BizNews founder Alec Hogg, who makes the portfolio decisions, will discuss these shares and others at his monthly catch-up webinar exclusively for BizNews Premium members next week.  Subscribe here.

S&P500

PS: Tim Modise picks up opportunities in South Africa in the digital era at the Wednesday Midweek Catch-up webinar (sign up here). Answering your investment questions at the BizNews Finance Friday webinar at noon are CM Trading’s Fred Razak, who will share insights on how to trade in financial markets, and Arran Kerkvliet, investment director at One Touch Property – a specialist in high-yielding UK real estate. Sign up here.

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