Investors back worldwide stock recovery with record investment punt
By Dan Moore
08:36, 13 April 2021
Investors have ploughed $576bn (£420bn, Є484bn) into global equity funds since late Autumn, easily overshadowing the $452bn (£329n, Є380bn) of the previous dozen years.
An upward investment trend
Compared with the levels of investment since the end of the financial crisis, market performance has been steadily improving in recent years.
Even more encouraging are signs that the appetite for a punt on the stock markets is growing, as the shock of the coronavirus pandemic subsides.
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Investors pin hopes on brighter future
Market performance has also been helped by mushrooming interest in retail investing and in relatively-new, fast moving assets such as cryptocurrencies.
According to the latest prices on capital.com trade in Bitcoin to US Dollar, for example, is very much favouring buyers, with trading sentiment at 82% for buyers and 18% for sellers. It’s an even starker situation for Ripple to the US Dollar, with 94% buyers and 6% sellers.
Indices stage recovery
The positive trading environment has also hit headlines in recent days with the FTSE achieving record breaking 22,177 last week, just edging ahead of the previous high of 22,108, which was recorded following Boris Johnson’s December 2019 General Election victory.
There are even signs that the FTSE 100 is slowly lifting itself off the canvas, after incurring significant losses last spring. It stood at 5,791 on 14 April 2020, and after a bumpy ride though the rest of the year, hitting a low of 5,577 at the end of October, had risen in 2021 to close at 6,884 yesterday.
A word of warning
Despite the positive outlook, some commentators have sought to insert a word of caution into the discussion about the future of global investing. Mark Haefele, chief investment officer at UBS Global Wealth Management said on Friday: “With markets continuing to hit record highs, some investors are concerned that the recent decline in volatility may not last.”
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