FNArena’s Weekly Insights – January 28 2020
The 2020 decade opened with a bang as, globally, investors started preparing for a recovery in growth later in the year on the back of ongoing loose policies from central banks and early indications of a bottom in the global slump.
Towards the end of last year, investor focus seemed to be on elevated valuations after what had been the best performance since 2009 for many an equity index. From the moment January started it quickly became obvious cash on the sideline was burning a hole in fund managers’ soul, and that cash was looking to be deployed sooner rather than later.
It’s not always the Australian share market starts the new calendar year by rising more than 6% in less than three weeks – more than double the 3% return achieved during the prior six months. Admittedly, there is an element of catching up as December proved rather gloomy for the ASX, exacerbated by a large foreign seller during the final trading session for the year.