Markets were slightly up yesterday with the expectation that the US would finally agree their financial package, which they did in the early hours. However, hot on the heels of that the US announced 1000 deaths from Covid 19 so we will see how that will play out today. Currently FTSE 100 is flat at 5667 and the Dow Jones is up 2% (13.45)
The markets in general have seen a rise of around 600 points this week and the following chart will show how our portfolios have fared. I have used the HSBC Global Strategy Portfolios that we have used quite a lot recently. The MPA risk profiles are 3 to 7 for A to E respectively.
The cart is from the start of the year and you can see how they have all ticked up in the last week.
I am not sure whether this is the start of the recovery, or what is termed a ‘Dead Cat Bounce’ but it does show that the more risk you take the more a portfolio can fall. It also shows that the more risk you take the quicker it will bounce back.
As we have still not reached the peak and lockdown has only been going for 3 days I think its too early to guess if it will fall further. I think 5,000 may be a floor at the moment and it could keep rebounding to that level. Hold tight at the moment and lets see this thing through.
Phil J McGovern FPFS