Yesterday, courses rose, but with low trading volume. SP500 futures trading was at its lowest in a month. Sellers were scarce. I interpret yesterday’s stock market surge as being driven by the daily number of infections turning to a decline in some major countries. A possible oil agreement also creates hope for better times. Even if this positive development continues, the continuation of movement restrictions will inevitably arise. The resulting collapse in companies’ turnovers will gain more space in investors’ thoughts. We are moving into the next phase of the crisis.
Not all companies suffer in the same way or for the same duration, but the majority will suffer, and consumer purchasing power will decrease. Until now, it has been about restricting purchasing demand with movement restrictions, and not all of these will be removed for months.
Instead of finding the bottoms of indices, it is more significant to find the winning companies of the crisis and avoid those heading for ruin. The golden age of stock picking. Not all bargain bin products will last. On the other hand, gaming companies have already bounced back from the bottom.