Equity markets have continued their stunning recovery, with the US S&P 500 closing up on the year on 9 June. Just to recap, this index started the year at 3231, rose to 3386 on 19 Feb, fell to 2237 on 23 March and then fully recovered to 3232 on 9 June.
We are often asked what is different about this market cycle. Our answer: speed. In previous bear markets and recessions these moves would have taken months, maybe years to play out. In today’s markets, weeks are like months and months are like years.
As often happens with big market moves, the arguments for and against them become more emotive as time goes on. Those on the wrong side of them find new reasons each day to be negative, whilst those on the right side of them try to link cause and effect in ways that are often debateable.