From Covid valley to Covid peak
For nearly a whole year, the Stock Markets have reflected the happenings around us, be it the crashes in productivity of the manufacturing and services sectors, or the Year to Quarter and Quarter to Quarter GDP forecast crashes across the globe in both the hemispheres.
We have witnessed the most tumultuous year that the current 8 billion odd individuals will potentially ever witness in their entire lifetimes. Its a sort of the feeling when one knows that one has lived through a future history lesson on how the indomitable human spirit rose up to the occasion and conquered the most brutal calendar year, a year most industrialists said "a year to survive, think of growth later".
And yet, here were are sitting in the last month of the calendar year 2020, the temperatures dipping but the stocks getting hotter on the back of announcements of likely vaccine roll outs soon, an indication that things will get back to the "old normal" and its not a matter of "if", but just "when" and that is not too far away, if we were to look at how the scientists and doctors have been working into getting out the vaccine.
If we look in the most unbiased fashion, the stock markets had already bounced back after about a quarter of depressed behavior arising from investor sentiments, the sentiments rose up, and the stock markets responded.
For those investors who missed the bus the last time around, here is your chance, don't wait for the vaccine news, invest now, just like Warren Buffet once said, "one should invest in the stocks when there is blood on the street, even if it is your own blood". We at Stocks and Street predict that there shall be a very big second wave of the bull run, only this time it will be due to the sentiments associated with getting back the old normal on the back of vaccine roll outs. It doesn't matter if you are an investor, a trader, or a speculator, whether you are into Equity or bonds or even the secondary instruments like options and derivatives, or even sectors other than monetary, like commodities, gold and other metals, and if you are in the US or outside in the EU, Asia or Africa and placing your bets on the myriad of the sectors like manufacturing, agriculture, IT or real estate - a high tide raises all ships.
Don't wait, act now, if you need professional advise, contact us for personalized actionable news that can guide you to fine tune your portfolio for wealth creation.