As the FTSE 100 hits 7,000 points for the first time since the Covid pandemic, global stock markets are poised to get even stronger. London’s index jumped over the important threshold in early trading in London, gaining over 0.5% to 7024 points.
London’s blue-chip index is up 40% since the worst lows of the pandemic.
This landmark moment represents the wider optimistic sentiment gripping global markets which are near record peaks.
We can expect global stock markets to get even stronger as investors look to seize the opportunities from economies reopening.
They are looking towards economies rebounding in a post-pandemic era due to the monetary and fiscal stimulus, pent-up cash and demand, and strong corporate earnings.
The current ultra-low interest rate environment and the under-performance of bonds will also act as a catalyst for stock markets.
However, the CEO’s bullish comments also come with a warning.
I would urge investors to proceed with caution as there are some headwinds on the horizon, including relations between the U.S. and China, the world’s two largest economies, which could be coming to a tipping point in coming weeks.
As such, in order to capitalise on the opportunities and mitigate risks, investors must ensure proper portfolio diversification.
A variety of factors are going to drive global stock markets. Investors will not want to miss out and should work with a good fund manager to judiciously top-up their portfolios.
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