Market performance broadens

17 August 2020

A more broad-based recovery appears to be underway as investors anticipate a bigger than expected US stimulus effect once Trump and the Democrats come to an agreement.

  • We were concerned a few weeks ago that markets were being carried by just a few major stocks, but performance is now extending to cyclicals and value stocks.
  • Bond yields are rising somewhat in anticipation of Washington eventually passing a delayed stimulus package.
  • Investors appear relaxed about Joe Biden's plans for increased taxes, which should be offset by more government spending if the Democrats win the coming US election.


Contact Us
Warning: Nothing presented on this website constitutes investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any person. You should not act on it in any way and are advised to obtain professional advice suitable to your own individual circumstances. The value of your investment may go down as well as up. You may lose some or all of the money you invest. Past performance should not be taken as an indication or guarantee of future performance; neither should simulated performance. The value of securities may be subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities.