The world remains in the grip of an enormous health and economic crisis. In acting to restrain the spread of COVID-19, countries across the world have enacted measures aimed at reducing infection rates and this resulted in the deepest downturn in economic activity since the Great Depression.
With interest rates cut aggressively and with government fiscal stimulus in the order of 10% of GDP in many countries, the consensus view is that growth will stabilise in the September quarter on the basis that businesses re-open.
Markets have rallied in recent weeks in response to signs of a peak in new cases of the virus. Investment markets continue to react to the likely impact on company profitability and ongoing government restrictions to contain the virus.
Share markets have rallied strongly in past weeks on expectation that corporate profits will rebound quickly next year. There is however the possibility that current share prices may be overly optimistic.
In uncertain times, it is important to focus on the longer term objectives of investments, rather than the short term fluctuations.
If there have been changes to your objectives, or you have concerns, please contact our team at Magnify Wealth.