Markets remain strong, but for how long?

Markets remain strong, but for how long?

Stock markets have been living in fantasy land over the past few months, in denial about the economic impact of coronavirus. The real question we should be asking is how long can this self deception continue before reality bites. Of course, not all industries are equally affected by the current state of affairs. Overall the economies of the world are slumping but there are also a number of beneficiaries that are profiting from the chaos.

Our All Ordinaries Index looked like it was running out of steam last week as it breached an uptrend, but the Metals and Mining Index continued to strengthen, largely on the back of gold and iron ore stocks that have been the big winners out of this pandemic.