The S&P/ASX 200 (ASX: XJO) fell 1.6% across the week, the third straight weekly loss in a row, while all three US benchmarks tumbled more than 2%.
Here are my three key investor takeaways from the week.
W-shaped recovery
Australian retail sales once again smashed even the most optimistic forecasts by ‘experts’, rising 4.9% in October, more than double expectations of a 2.2% gain.
Retail sales are now 5.2% higher than 12 months ago with a 13% improvement in NSW contributing to 80% of the improvement.
This news, combined with the jump in payrolls the prior week, is suggesting a W-shaped recovery from east coast lockdowns is on the cards.
The threat, of course, remains the self-inflicted supply chain bottlenecks, which may struggle to keep up with a surge in demand.
We’re not done yet
News that the South African strain may be vaccine-resistant and significantly more transmissible has shaken confidence across the world, likely placing pressure back on central banks and governments to prepare another round of support.
As with previous lockdowns, the perception that we are nearly beyond the pandemic has clearly come too early, with a lot of water to go under the bridge, so to speak.
More pain for AMP
AMP Ltd (ASX: AMP) remains a real-world example of the difficulty of value investing in the modern day.
Despite many experts suggesting significantly higher value latent in its business, the group announced another $325 million write-down ahead of the demerger of its AMP Capital division.
The $325 million covers defunct technology along with ‘goodwill’ associated with previous acquisitions.