The recovery in equity markets has confounded some given the economic damage created by the COVID-19 crisis. However, it's important to remember that stock prices are forward looking in nature. So, from this perspective, it makes sense then that investors have quickly looked passed the near-term damage, instead eyeing the reopening of the economy and a rebound in corporate profits.
Another thing to keep in mind is that the stock market is not the economy. Not only are the hundreds of thousands of nonpublic businesses still enduring hardship not counted in major stock indexes, but the market is heavily weighted toward technology companies that have actually benefited from societal changes forced by the pandemic.
Tune in for a guide to ETFs and investing strategies for potential long-term success. View in a browser Fidelity Fidelity Log in Creating a portfolio with ETFs: Why and how Creating a portfolio with ETFs: Why and how