Global stocks are rebounding on stimulus measures and can be expected to recover considerably by the end of the year, affirms the CEO of one of the world’s largest independent financial advisory organisations.
The comment from Nigel Green, CEO and founder of deVere Group, comes as shares in the Asia-Pacific region jumped and European indices opened higher on Tuesday, recovering from dramatic losses on Monday following the increase in the number of certified coronavirus cases and the oil price war that ignited over the weekend.
Green noted: “Stock markets will rebound quickly on news of stimulus measures to be implemented by governments around the world to help cushion the economic impact of coronavirus and the oil price war that developed over the weekend.”
China has an investment plan for this year of tens of trillions of yuan, including gas pipelines and nuclear power plants.
U.S. President Donald Trump has pledged a “major” economic relief package, potentially to include a payroll tax cut.
The UK Chancellor is expected to announce a raft of emergency measures to support businesses in his first budget on Wednesday.
Meanwhile, Australia’s billion-dollar coronavirus stimulus package is likely to include one-off cash payments to certain groups.
The deVere chief executive continued: “The stimulus packages within major economies, together with the practical measures being taken to limit the spread of coronavirus – such as Italy’s Prime Minister Giuseppe Conte placing the entire country on lockdown – plus China signalling that the outbreak has peaked with a visit to Wuhan by President Xi, will serve to calm markets.
“We expect global stock markets – which are actively seeking bullish signals – to have recovered significantly before the year end.
“Right now investors, such as myself, are using this wave of volatility to review their portfolios where necessary and, importantly, to drip-feed new money into the market.
“A growing number of investors are going to be taking advantage of the current lower entry points to enhance their portfolios in the near-term.”
The deVere CEO concluded: “Markets are rebounding and it is likely that they will recover significantly by the end of 2020.
“Investors need to ensure that they remain in the markets with well-diversified portfolios and should consider topping up their portfolios sooner rather than later in order to create, grow and protect their wealth.”