If the indiscriminate selling seen in March triggered one of the fastest market corrections in history, the recovery has also been swift. To the point that all types of investors lose and less than in 2018, including a pandemic, something that was difficult to anticipate.
If someone had told you in March that your portfolio would suffer fewer losses this year than it did in 2018, including a global pandemic, it would have been, to say the least, hard to believe.
Especially since this year there has been one of the fastest corrections in recent times, which has led a conservative investor, by definition alien to risk assets, to lose 7% between January and March of this year, which is what mixed funds in this category lose, on average, 2 points more than in the fateful 2018 -with permission from the current one, that was also one of the most difficult years to manage in the market due to the virulence with which it falls occurred in the last quarter-.
However, the recovery of assets has also been swift. And now, that same investor profile, to continue with the example, has minimized its red numbers to 0.75%. The same happens with the rest.
The catalysts for this to have been possible have been several. The fundamental? The extraordinary measures of support that governments and central banks have taken in recent months to support an economy hit hard by the virus in order to minimize its impact.
But, above all, what has accelerated the recovery seen in the stock exchanges in recent weeks has been the announcement by Pfizer , on November 9, about the efficacy of its vaccine, which led the European stock market to experience the longest month bullish in its history.
It was, without a doubt, the most anticipated news in recent months and to which investors did not take a minute to cling, with strong purchases in all assets that day, which over the weeks have been keeping up that other pharmaceutical companies have been reporting their progress.
Looking ahead, “after a week of transition (despite the all-time high on Wall Street), the next one will provide new impulses: the start of vaccination in the US and the UK, the ECB could announce an increase or extension of its purchase program, progress or Brexit agreement for the European Council.
The risk continues to be staying out of the stock markets “, they say in Bankinter. A moderate investor, who dedicates most of his portfolio to investing in fixed income, reduces his losses from the 15.3% suffered in March to the current 1.74%
In this way, the portfolios of the most aggressive profiles, which lost 20% in the first quarter of the year, are now yielding 4.02%, 16 points less. But that 4.02% is also less than what they lost in 2018.