End of Quarter Rebalancing

Posted: June 24, 2020 in Uncategorized
Tags: , ,

This quarter showed a massive difference between stock market performances and bond performances. A bit like last quarter, but this time favouring bonds.

This is due to the fact that stocks rallied as they believed the Covid-19 sell off was finished, while bond traders where always skeptical.

This situation is bringing the balanced abd pension fund to reallocate huge quantity of money from bond to stocks (in US between USD35 billion to USD billion – in the world in excess of USD170 billion).

So there could be a dip – that probably the media will attribute to Covid -19 resurgence.


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