Home / Uncategorized / Winning in a “K-Shaped” Recovery

Winning in a “K-Shaped” Recovery

Uncategorized

The S&P 500 Index reached a historic high on February 19th of this year, only to break that record less than six months later. On its face this sounds reasonable, however when considering the unprecedented nature of the events that transpired in-between, this is downright shocking. Over this six-month period the S&P 500 realised its swiftest decline in history, contracting over 30% in less than 22 trading days, putting an end to the 11-year bull market, as 9.5 years of job gains were wiped away in less than a month. The US government passed a $2 trillion relief package, the largest stimulus in history as the Fed slashed interest rates near zero. In the meantime, the US economy shrank by an annualised 32.9% quarter-over-quarter on an annualised basis, the largest ever recorded contraction.

To read the full media release by QS Investors click here.

Michael LaBella, Head of Investment Strategy at QS Investors.

  • Staff Writer


    Related
    Investors can’t afford to ignore meta-trends: Oppenheimer Generations

    Being a truly long-term investor means you can usually rise above market noise. But even investors with a 100-year time horizon need to think about the meta-trends emerging today to prepare their portfolios for tomorrow, according to Oppenheimer Generations.

    Lachlan Maddock | 25th Sep 2024 | More
    Emerging market resilience paves the way for new opportunities says Amundi

    Despite recent China woes, emerging markets are poised to enjoy a growth advantage over developed peers, creating opportunities for investors across all major asset classes. Countries in Latin America are paving the way for a bout of monetary policy easing in the second half of the year; the prospect of lower interest rates has helped…

    Investor Strategy News | 1st Aug 2023 | More
    Mercer adds new wealth Pacific CEO role to support growth strategy

    The appointment of industry veteran Cathy Hales, who started in the newly created role on Monday, will support Mercer’s growth strategy across investments and retirement in the Pacific region, the company said. Her remit will include the $63 billion Mercer Super Trust.

    Lisa Uhlman | 26th Jul 2023 | More
    Popular