Investors begin to plan for recovery

Investors begin to plan for recovery

It’s been a time like no other, and one we won’t forget for the rest of our lives. It began in a slight haze around January time with the news of a new infectious disease that had taken hold in Wuhan, China, and had begun to slowly spread around the world.

Fast forward a relatively miniscule 12 weeks and most of the world (about half of the world’s population) is now living in some form of lockdown or restriction. These unprecedented measures and restrictions to our daily lives are something that the vast majority of us have never seen before.

Aside from our grandparent’s generation, or possibly older, who lived through the war, there isn’t really another comparison to draw from as the last global pandemic was in 1917, over 100 years ago.

Something of that magnitude was always likely to spook investors across the world and, as expected, many of the markets began to plunge on the back of an increasingly worrying picture.

The FTSE 100, the Nasdaq, the Dow Jones and many European stock markets took steep and worrying drops as the picture became gloomy. There was talk of a severe shock to the world economy that could do lasting damage and a lot of pessimistic talk.

Having weathered much of the storm, and with the fog now beginning to lift, it’s seeming as though much of Europe has now passed the worst of it and are now in the midst of implementing plans or the lifting of these restrictive measures, and investors are now looking to the future to see where the money lies, and are eyeing a pretty big recovery.

Money ploughs into western markets

First and foremost, it must be said that this won’t be a returning of business as usual, and the oil markets are a perfect example of this new reality, with prices turning negative in the US for the first time in recorded history.

That has now translated into investors ploughing back into the markets in new and innovative areas, as well as back into property and bonds.

Many of the European markets have now returned to ‘bull market’ status, meaning that they’ve reached 20% higher than the recent low point, with the German DAX leading the way.

A recent analysis by This is Money noted that ‘Because of the unique circumstances of the social lockdowns forced by the virus, any economic recovery stems from loosening and ultimately removing the lockdowns in place in many countries.’

This is especially true now across the west, and the NASDAQ in the US has now recovered to it’s pre-pandemic point, marking a quite incredible recovery.

Investors appear to have taken this as the green light to start planning for investments post-lockdown, and the recovery appears to be swift.

UK Property

The UK property market has been one of the most robust in the world in recent years, and it appears that even in a global pandemic it has maintained its status.

Despite some markets across the world taking an understandably significant shock the UK market appears to have shifted less than 1% either way despite the entire market being put on hold until restrictions are lifted.

With investors now apparently keen to get the markets moving again it seems that many may now be placing their money back into UK property and betting big that 2020 will see a huge recovery and growth for the industry.

Are you looking to invest in the UK? Have a browse through our website, or speak to one of our expert property consultants today on 0330 124 2079.

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