FNArena’s Weekly Insights – May 25 2020
Dear time-poor investor: the share market remains split in two opposing baskets
In this week’s Weekly Insights:
-Two Poles Apart
-REITs in June
-Bad News Good For Computershare
Two Poles Apart
By Rudi Filapek-Vandyck, Editor FNArena
Most social scientists share the view that the GFC in 2008/09 played a major role in further polarising modern day societies.
To get an accurate insight into what is happening in the economies around us, we now need to separate the top 1%, while also acknowledging there are major differences between Haves and Have Nots, as well as in between generations and genders.
What is not as often acknowledged or highlighted is that, post-GFC, a similar polarisation has manifested itself in share markets.
When viewed through this prism, a far better understanding of the many waves and movements can be obtained, yet most commentators and experts continue referring to “the market” as if it still were one cohesive bundle of Australian companies reflecting the health and direction of the Australian and the global economy, as well as representing sentiment and investor views about it.
I guess it’s way too difficult for mainstream media to explain to their less-familiar audience why shares in CommBank, BHP Group, CSL ((CSL)) and Goodman Group ((GMG)) are rather seldom moving in synchronicity these days.