South Africa. Investors could be hit by uneven stock markets

Investors could be hit by uneven global stock markets.

The warning comes as stock markets around the world extend their remarkable rallies despite a continuing global public health emergency, economic downturns and financial upheaval, political uncertainty and widespread social unrest.

Wall Street is expected to open higher again on Tuesday – with the benchmark S&P500 less than 10 per cent from its all-time high. In the Asia-Pacific region and across Europe, all major indices made gains. Global markets are continuing to rally.

This is extraordinary as tensions between the U.S. and China – the world’s two largest economies – are heightened, when the President of the U.S. is threatening to deploy the U.S. army onto the streets of America, and as the global economy attempts to recover due to an ongoing pandemic for which there is still no cure, to name a few of the current factors causing chaos. All of this would normally send the markets into tailspin. Yet this time they continue to rally.

But a closer look at the markets shows the upswing is being fuelled by a handful of companies that reflect the ‘new world’, which is increasingly tech-driven. This is concerning as some investors could potentially take a significant hit.

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