Are we there yet? Have we reached the bottom?
After the extraordinary fall in values, a base seems to have been reached.
Stock markets have stabilised with minor swings in both directions.
This is most likely a “U” shaped recovery with no dramatic surge in values at the present time.
Upwards growth will occur just as soon as commerce gets back into action.
When shops reopen and manufacturers start producing goods for sale, we will see optimism returning and shares rising in value.
Statistically, the numbers are:-
| At the peak | At the bottom | Now | |
| UK FTSE100 | 76740.8 | 4993.9 | 5811.23 |
| Date | 17.01.20 | 23.03.20 | 14.04.20 |
| USA Dow Jones Index | 29398.08 | 18591.83 | 23390.77 |
| Date | 14.02.20 | 23.03.20 | 09.04.20 |
So you can see shares have made a modest recovery of +16.36% in the UK and +25.81% in the USA.
Where next?
It will take a clear end in sight for the Coronavirus disease for optimism and confidence to return.
Meantime…
We should hold on to our investments, stay invested and ride out the current crisis.
Businesses will revive and opportunities will abound for good quality companies after the crisis.
Keep Calm and Carry On is the order of the day.
And of course, take care and stay safe.