2020: The Year No One Predicted
Since the very beginning of the global coronavirus pandemic, the world has witnessed markets succumbing to a bout of sickness. With the stock market in turmoil due to the onset of this ‘sickness’, an all-time high drop of 5.3% was seen in FTSE100 (share index consisting of the top 100 UK companies), on the day coronavirus was declared a pandemic. This multi-faceted shock to economies has been widespread and unprecedented. In case of the UK market, prior to coronavirus, domestic politics and Brexit had dominated the workings of the economy. Just as the country looked to have found a firmer footing, the pandemic hit. Sterling slumped to multi-decade lows against the US dollar, following a synchronized rush for dollars and its safe haven properties. Whilst the effects of coronavirus are still very much ongoing and the full extent of the damage still unknown, a step back to gain perspective on current market on goings is necessary to pave a path for predicting future trends.
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