Take that COVID-19.
That’s’ what most S&P 500 investors would have been saying this week when the index closed at an all-time high on Tuesday.
The S&P 500 regained all of the losses it suffered in March, when the pandemic hit. It is up 16.8% over the past 12 months.
It is defying the overarching economic outlook: high unemployment across the globe (tens of million in America out of work); COVID-19 playing havoc with consumer confidence and crippling entire States such as California and Texas; industries collapsing, businesses failing … some may even have you believe that 2020 is the lead in to the 2021 Zombie Apocalypse.
It’s not.
In the famous words of the great Curtis Mayfield the world will ‘Keep on keeping on’ and as Paul McCartney tells us ‘We can work it out’.
It seems the S&P 500 may have already done so.
I was asked this week why some markets such as the S&P 500 were doing well.
To answer that question you just have to have a look at how COVID is changing the world, not destroying it.