Covid-19 has thrown the financial markets into disarray and uncertainty. Brokers and investors need to use every tool at their disposal to optimise their returns, which is where platforms, such as AlternativeSoft, are so useful.
If we look at the numbers since the pandemic began to really impact the markets, we can see that since the S&P 500 bottomed out on 23rd March 2020, the best performing index has been Bitcoin 1, delivering a market beating return of more than 129%.
Previously 2, we saw that the best investments during currency devaluations were gold and the stock market, even during an economic crisis 3. Likewise, the indices below show that growth equities, gold and Bitcoin have performed well during the current economic crisis.
|Best long only fund, AUM> US2b 4||114%||Morgan Stanley Discovery Fund, 01 Apr 2020 – 30 Oct 2020|
|Best hedge fund, AUM> US2b||52%||Cadian Fund, 01 Apr 2020 – 31 Sep 2020, Oct 2020 not available|
|ETF Russell 1000 Growth||75%|
Source: AlternativeSoft, Internet data, HFR, Eurekahedge, Morningstar
One of the biggest factors here will be the result of the US election. Following Joe Biden’s success on the 07 Nov 2020, we expect USA economic policy will be to print more USD5 . This will probably come in the form of a stimulus package to prop up US wages, help those furloughed, keep businesses afloat and fund unemployment/social welfare for those made jobless by the pandemic.
As a consequence, we can safely understand that investing in gold, bitcoin and growth stocks will continue while money is still pumped into the US economy. When that ends, investors will have6 a maximum of 12 months to pull out their investments from gold, equity and Bitcoin. At that time, investors may have to implement a new investment strategy. Yet again, investors will be on the lookout for the best sources of analysis and software to secure their next high performing investment.
3 We showed that before and during the crisis, these three investments are the best. We showed that after the crisis, Gold and stock market were still the best investment for as much as 12 months later.
4 I selected ‘fund assets under management’ larger than two billion USD as it is an easy selection for a company selecting funds. We searched for funds in USD, CHF, GBP, EUR, and JPY only, excluding bitcoin hedge funds. There are 887 hedge funds and 6977 long-only funds in these 5 currencies, with AUM larger than US$2bn, including different share classes.
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