6 Months Since Lockdown
When the first lockdown was announced on 23rd March, many thought that by September, our lives would be returning to normal.
Unfortunately, it looks like we are heading for tighter restrictions throughout autumn & winter and it may not be until spring or even summer that we can finally emerge from a post-COVID world.
The pandemic has had a seismic impact on the global economy. In the UK we also have the last stages of Brexit to contend with and in the US, the public go to the polls in November.
So against this turbulent backdrop, how has the stock-market fared?
The UK market has not performed well, whereas global markets, particularly the US have performed much better.
The above graph shows the UK’s FTSE 100 index (the largest 100 companies in the UK) against the S&P 500 (the largest 500 companies in the US) since the start of the year. The difference is significant, almost 24%.
This again emphasises the importance of diversification and having exposure to international markets in your pension or investment. All our client portfolios include funds that invest in overseas companies, including the US, and this continues to serve us and our clients well in these challenging times.
The outlook for 2021 is more positive, particularly if there is good news regarding a vaccine, and we look forward to the day we can open the doors to our clients again.
In the meantime, as ever, we are here to help. If you have any questions or concerns, do not hesitate to get in touch.
So keep safe and roll on 2021!