Market Update: Can markets keep going up?

Market Update March and Quarter

Market Update: “The stock market is a device for transferring money from the impatient to the patient” (Warren Buffet)

March and Quarter 1 have come to an end. The steady increase in value of developed markets continues…Emerging giving a little bit back after a good run..raw data being

Mar 2021

S&P 500 +4.2% +5.8%

Nikkei +1.6% +7.3%

FTSE +3.5% +3.9%

MSCI W +3.1% +4.5%

SSE -1.9% -0.9%

EM50 -4.3% +2.1%

And on the currencies, what was an undervalued US Dollar started clawing its way back against other currencies, data being..

Mar 2021

GBP +1.0% -1.3%

EUR +2.9% +3.7%

JPY +3.8% +7.1%

AUD +1.7% +1.9%

CNY +1.4% +0.6%

Its now been over a year since we first heard about the Covid 19 virus and 12 months ago many countries were entering their first period of lockdown and the air of uncertainty was at it’s highest since the second world war.

Understandably the market update: March 2020 saw the markets take a huge tumble as uncertainty is what they dislike the most and hundreds of billions of dollars were wiped off of portfolios. Much talk at that time was about the shape of the recovery (note there was always going to be one). Would it be U, V, L or W. A year on we can say it was indeed V shaped and the assets of those who stayed invested in the S&P 500 are 60% higher than they were a year ago. This 60% gain is double the 30% fall that occurred between Mid February and Mid March when this then unknown virus started to change many people’s lives.

This once again illustrates the importance of keeping a cool head in situations like this. Don’t panic sell. If anything seek buying opportunities at good prices. Have faith in the good companies you own and they will come good. To the extent of a 30% profit for those who stayed invested.

In it’s last trading day of March, the S&P 500 very nearly broke the 4,000 mark, a milestone I expect to see during April.

It was February 1998 that the market first broke the 1,000 mark. It then took over 16 years to breach 2,000 in October 2014, just five more to reach 3,000 in October 2019 and assuming next month we do get to the 4,000 only two and a half years to get here.

As you can see the pace of growth has accelerated. This is due to the amazing technological innovations we have seen over the last 20 years. This is having an impact on the world over. Urbanisation in Emerging markets driving a consumer led economy. More people buying tubes of Colgate toothpaste, Dove shampoo, going to Strabucks, gaining access to healthcare…I think you get the picture

And that’s not even to mention the tech giants. I spoke in last month’s blog about how there is still around half of the world’s population without internet access and how this number will reduce daily. No one will stop using the internet once they have access, but many will start.

The number of Facebook users increased in the last 12 months by 200 million. This would represent the 8th most populous country in the world, in between Bangladesh and Nigeria. When you also consider that virtually none of these new users would have come from China, this highlights the growth of the consumer even more acutely.

Every new Facebook user is now subjected to the advertising that will lead to consumption which will lead to growth.

Many companies that trade on the S&P 500, whilst American have a global footprint. It’s this footprint which will continue to see good companies in good sectors grow..

Previous Post
Newer Post

Leave A Comment

Open Hours:

Mon – Fri: 8.30 am – 6 pm, Saturday – Sunday: CLOSED

Johannes Heikkila

Advisor
From Finland
Expat for 1 year
Speak Finnish, English & Spanish

Speciality:
- Health Insurance
- Savings Plans

Robert Cunningham

Advisor
From the UK
Expat for 13 years in Thailand & Vietnam
5 years' insurance & financial services

Speciality:
- Health Insurance
- Life Insurance
- Savings Plans

Romain Camillo

Senior Advisor
11 Years in Insurance & Financial Services
Expat in thailand for 7 years
Joined Tenzing in 2020
Speaks French & English


Speciality:
- Health Insurance
- Life Insurance
- Savings Plans"

Nancy Dao

Advisor
From Vietnam
International Business from UK
Lived in Singapore
Speaks Vietnamese & English

Speciality:
- Personal Health Insurance
- Group Health Insurance

Hunter Deems

Advisor
10 years' experience in insurance and investments
Joined Tenzing in early 2020

Speciality:
- Investments
- Savings Plan
- Health & Life Insurance
Patrik Shore Tenzing Pacific Services

Patrik Shore

Senior Advisor
From Sweden & New Zealand
7 years' insurnace experience
Joined Tenzing in 2019
Crim Science
Speaks English and Swedish

Speciality:
- Savings Plans
- Health Insurance
- Life Insurance

Geoffrey Mann

Advisor
From the US
Employee benefits & insurance compliance background
Joined the Tenzing team in 2019
Law degree from the US

Speciality:
- Personal Health

Nhu Nguyen

Senior Advisor
From Vietnam
Joined Tenzing in 2017
Fluent in Vietnamese & English

Speciality:
- Group Health & Life Insurance
- Personal Health"

Ian Comandao

Health Insurance Manager
From Philippines
MBA from Duke University
Expat for 20 years in US, China, Hong Kong & Vietnam Worked at Tenzing since 2018
Fluent in English, Tagalog, Mandarin

Speciality:
- Personal Health Insurance
- Group Health Insurance
- Business Insurance

Craig McAvinue

Director of Wealth Management
From the UK
25 years' expereince in investments & insurance
Expat in Thailand for 5 years
Chartered Accountant by trade
Holistic approach to consulting his clients

Speciality:
- Investments
- Savings Plans
- Health & Life Insurance

Quinn Miller

CEO & Managing Partner
From the US
Joined Tenzing in 2014
Expat for 10 years in Vietnam
Finance & Entrepreneurship Degrees

Speciality:
- Group Health Insurance
- Life Insurance
- Savings Plans"
  • 84 35857 2629
  • 84 35857 2629
  • quinn.miller@ten-pac.com

Quinn Miller

CEO & Managing Partner
From the US
Joined Tenzing in 2014
Expat for 10 years in Vietnam
Finance & Entrepreneurship Degrees

Speciality:
- Group Health Insurance
- Life Insurance
- Savings Plans"