Market Watch is a monthly publication on the investment themes that influence returns from well diversified portfolios like ipac’s.
In this edition, investors may be surprised to learn that in October, in the United States, the S&P 500 Index rose 10.8%, the biggest monthly gain since 1974. In addition, the Australian share market increased 7.2%.
In the last few months, investor sentiment has soured as investors have focused on macroeconomic issues such as sovereign debt problems in Greece. However, corporate profits have been positive. The result is that share markets can suddenly experience gains of a strong magnitude when investor confidence improves.