Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Why the S&P/ASX 200 is going nuts

The S&P/ASX 200 (ASX:XJO) has gone nuts in recent days. It's up another 3.3% right now. 

The S&P/ASX 200 (ASX: XJO) has gone nuts in recent days. It’s up another 3% right now.

What’s going on with the ASX 200?

This week the ASX 200 is up 8%. Since last Monday it’s up 14.8%. Yet despite those impressive growth numbers, it’s still down 26.9%.

The share market doesn’t normally do this. The ASX hasn’t fallen as hard as it has over a month since 1987.

COVID-19 is obviously why the ASX 200 is down so much. But why does it keep trying to recover?

Not every investor is feeling utterly negative. People are seeing these lower prices as opportunities compared to where they were two months ago. And don’t forget that the RBA cut Australia’s interest rate to just 0.25%. Would you rather keep cash in the bank or invest in shares at much lower prices?

The western world seems to be doing everything it can to keep on top of COVID-19 in terms of the lockdowns, the healthcare and the economic stimulus.

There have been some large shares that have dragged the market lower since February. NAB (ASX: NAB) and ANZ (ASX: ANZ) are down 39% and 37% respectively. Major ASX banks could face painful write-offs if rising unemployment and payment holidays hurt the bank balance sheets.

Some of the major ASX shares have held up much better. The healthcare giant CSL (ASX: CSL) has only seen its share price drop 10%.

It’s been some of the under-pressure shares that are driving the market higher today. The Woodside Petroleum (ASX: WPL) share price is up 7.6%, the Santos (ASX: STO) share price is up 10.2% and the Scentre Group (ASX: SCG) share price is up 11.2%.

But blue chips may not be the best opportunities today. It could be much better to buy these technology companies:

[ls_content_block id=”18457″ para=”paragraphs”]

Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content