FNArena’s Weekly Insights – April 13 2020

No Time For Over-Confidence

By Rudi Filapek-Vandyck, Editor FNArena

The share market is now divided, roughly, in two groups of investors.

Those who have been buying shares over the past three weeks are feeling like they have been very much rewarded for it.

The other group has at least one eye fixated on the deteriorating situation on the ground in New York and elsewhere in the US and cannot help but wondering whether the first group is living in the land of delusions or what?

The latter group is supported by a large army of technical analysts and chartists and by scholars of history who assure us all this is but normal pattern during a Grand Bear Market; first comes the savage sell-off, then follows the strong rebound, but ultimately prices will end up trending lower.

If history repeats then rallying almost 900 points from a brief revisit near 4400 is that strong rally. But what if this Bear Market doesn’t play fully to the script?

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