Stock Markets Rally Despite Corona Virus Impact
As of Thursday, April 9th it was reported that Stock markets have shown signs of a rallied response despite up to date evidence of the coronavirus that has had a terrible impact around the world in every part of our lives as well as the global economy even as central banks stepped in with more help.
At the close of business, London’s FTSE 100 closed at 165 points higher, which is approximately 3% growth. On Wall Street, the S&P 500 closed with an increase of 1.4% growth according to Sky News.
The FTSE results highlighted the best week since it has had since 2009, showing an upturn of 8% over the four days leading up to the Easter long weekend. The S&P produced its best results since 1974 with a growth of 12% for the same period.
This growth was in spite of figures released by US authorities showing that 1 in every 10 Americans in the US workforce has had to file for jobless benefits during the last three weeks.
It is also reported that the IMF has been warning that this may be the worst global downturn since the great depression of the 1930s which is due to the impact of the Corona Virus pandemic affecting the whole world.
This has resulted in investors turning their attention to the announcement from President Trump that the US Federal Reserve $2.3trn program offer to struggling companies and local governments with four-year loans.
Britain’s Bank of England has also agreed to permit the Treasury a larger overdraft to make sure it has enough cash to cope with the disastrous impact the coronavirus is having during the countries’ lockdown.
That impact became more evident as the UK Government produced figures showing that over 1.2 million people had already applied for universal credit during the last three weeks, this is likely to continue to rise while as another forecast suggested that UK GDP may shrink by as much as 25% in the second quarter of 2020.
The Lockdown
Many governments in countries around the world are enforcing a lockdown, forcing many people that still have jobs to work from home and this is true with many stockbrokers and investors who now join the online trading community.
It is also a time that has created lots of downtimes that can be used to reflect on trading strategies and new approaches to services investors and Money managers can off their clients such as our Strategic Analysis Indicator
From the image above that, you can click on to enlarge will show the Strategic analysis Indicator’s performance ( BLUE LINE) compared to SPY and QQQ as of the close of business March 27th, 2020.
SAI Elite is designed to capture 75% + of an up or down move in the S&P, the NASDAQ (tech stocks), Small Cap stocks and other specific sectors.
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