Why did shares rocket during lockdown?
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ShinyStarlight1
Posts: 43 Forumite
Looking through the last 5 years of many funds on Vanguard, so many had their share performances absolutely rocket around April 2020 onwards. Why was that?
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At that point we'd just emerged from the massive crash that accompanied the first stage of the pandemic, the world stopped looking like it was going to end and what followed was a massive working from home inspired tech boom.
There were a hell of a lot of people who suddenly had a load more disposable income, time on their hands and started investing, all chasing the same kind of stocks. Ocado, the "magnificent 7" (who make up a HUGE weighting of most world index funds), Zoom etc.
There may well be more to it than that, but that's the way I see it2 -
+ lots and lots of cheap money6
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Most major world events tend to cause shockwaves in markets. It’s usually a good time to buy, but not always for the feint hearted.2
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World governments were throwing free money at everyone like there was no tomorrow.Ex Sg27 (long forgotten log in details)Massive thank you to those on the long since defunct Matched Betting board.3
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We had a bit of a tech pullback in 2022 but since then AI mania has pushed everything higher still!
I'm really starting to look at my monthly investments now and wonder if I should try to avoid those Magnificent 7 behemoths - even if my strategy is generally passive investing for the long term. Although, knowing my form, I'd dodge them and watch them go to the stratosphere and stay there.
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Cus said:Sg28 said:World governments were throwing free money at everyone like there was no tomorrow.Remember the saying: if it looks too good to be true it almost certainly is.1
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Sg28 said:US World governments were throwing free money at everyone like there was no tomorrow.0
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Here’s an example of what I mean, but so many of the funds show the same sharp rise. I was wondering what the economic cause of this was, since it seemed the world shrank into itself, not shopping, not restauranting etc.
S&P 500 ETF:
01 Apr 2020 - 31 Mar 2021 +55.90%0 -
ShinyStarlight1 said:
S&P 500 ETF:
01 Apr 2020 - 31 Mar 2021 +55.90%1
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