FNArena’s Weekly Insights – April 06 2020

How Deep, How Long, How Far?

By Rudi Filapek-Vandyck, Editor FNArena

Share market sell-offs are an emotional affair during the best of times, let alone during a Bear Market.

It should thus not surprise that since overall volatility has quietened down significantly, market commentary often involves the “is the bottom now in” question while investors are starting to feel more comfortable putting fresh money in the market again.

But what can we reasonably expect from our investments over the next eight months, and beyond? Suppose the news flow doesn’t get worse, and society can soon start focusing on life post lockdowns again, is it reasonable to expect a rapid rally back to where markets were in January or in December?

Last week, Sze Chuah, Senior Investment Analyst at Ord Minnett tried to answer the question about year-end 2020 potential for the ASX200. His calculated attempt is interesting from multiple angles, irrespective of whether it proves too optimistic or not enough in the months ahead.

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