It’s been called the Fomo rally, as shares picked themselves up off the floor after a diabolical March and bear markets turned bullish.
The FTSE 100 closed a notch below 5,000 on 23 March, the day it was announced Britain was going into lockdown, but somehow managed to bounce 23 per cent to the middle of this week before slipping back.
In the US, April was even more astonishing – the S&P 500 had its best month since 1987.
So, what’s going on? Is this the stock market signalling the start of a coronavirus recovery, or have investors merely been piling in driven by Fomo – the fear of missing out.
The big US tech names’ star turn has helped drive confidence and in the UK it has been the big names hit hard that have rebounded over the past four weeks, including housebuilders, Next, Cineworld, ITV and the FTSE 100’s top riser is cruise ship firm Carnival – up 63 per cent as brave investors buy in.
But are investors getting ahead of themselves and simply all chasing in the same direction like kids with a football?
On this week’s podcast, we look at the rally, what’s driving it – beyond Fomo – and the history of false dawns in stock market crashes, known as the dreaded dead cat bounce.
Simon Lambert and Georgie Frost also discuss how Britain gets back to business and how the plans might shape up for getting us back into factories, offices, shops, pubs, restaurants and everywhere else.
Plus, would you dare book a holiday now? If so, the podcast duo discuss what you need to consider.
And finally, the clock has have passed by quickly for a generation of cars that some of us grew up with and the Metro, Fiat Panda and early Vauxhall Astra are now 40 years old, tax exempt, and theoretically classic cars… but are they?