Private Investor's Diary Portfolio 

Taking a bullish cue from history

Taking a bullish cue from history

The 3 June marked 50 trading days since the S&P 500 bottomed in March. The subsequent rally was the biggest 50-day rally since 1952. As John Authers pointed out in his excellent daily email, Points of Return, comparisons before 1952 are difficult as the stock market used to trade over the weekend. However, he added, there is a "fair chance that this is the strongest ever". The 50-day rally in the US up to 3 June was 39.3 per cent. The UK and other equity markets participated, but to a lesser degree. I hear this recovery described as the most hated in history. Many are bemused as to why markets are rallying in the face of such awful economic news.

 

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