Market strengthens further whilst money is being raised

The Australian market has performed very differently so far in 2020, when compared to all of the previous years I can remember, particularly since the coronavirus was dumped on us. The 30% collapse in the market was driven by extreme fear but we quickly got over that with a V-shaped recovery that went beyond what even the optimists would have been prepared to predict, even while the casualties of the virus were mounting in the USA, the UK, Russia and now Brazil.

But what is puzzling is that the enthusiasm in the market seems even more optimistic than it was before the virus appeared. Are we to believe that there is no economic damage that needs to be factored in?

On a seasonal note, the months of May and June are traditionally quiet months in Australia as we approach the end of the fiscal year. It is normally a difficult time to raise money but there seems to be a voracious appetite for new issues at the moment. 

 WeeklyComm30May2020.pdf