Monthly Comment May 2020

Despite great uncertainty about the continued spread of Covid-19 and the economic effects of closed communities, most financial markets rose in May. The positive trend was led by the technology sector, but also sectors that were the main losers during the spring showed strong returns during the month. The markets focused on the positive effects that come from continued reopening of economies. There is some concern about how the Q2 reports will be received, but both TINA and FOMO overcame that. In Asia, the development was not as positive. A harsher tone between the US and China, as China introduced a security law in Hong Kong, contributed to the negative market sentiment.