Global equity markets continued to maintain the breakout that began at the end of June, and the S&P500 index finally turned positive for the current year.

We are almost back to the February highs, money continues to flow in from the sidelines and bearish investors are surrendering.

Equities rose this month, with the S&P 500 gaining +5.3% and the MSCI World Index +4.7%, but also 20-year bonds appreciated +4.9%.

Our strategies performed very well compared to these benchmarks with Universal +5.3%, MiniMax +17.0% and Pro 15.2%.

The possibility that we could return to all-time highs within five months after all that has happened this year is almost miraculous. As I said earlier, I am sure people will be studying the equity and bond markets of 2020 even in a hundred years. I don’t think anyone could have possibly imagined in mid-March that stocks would recover 100% from these steep declines so quickly.

So what happens next?

The fact remains that the objective damage to the world economy is enormous. On the other hand, governments have kept interest rates close to zero and vowed to use all available instruments to support an economic recovery.

But any move above previous highs would essentially mean that the prospects for future earnings growth are better than before COVID and the global lockdown. And that is really hard to imagine.

Again, I will avoid making predictions and take a step-by-step approach as economic reality unfolds and simply continue to follow our tried and trusted PentaTrader strategies…

Stay happy, healthy and wealthy!

Omar