Lonsec Market Commentary – January 2020
Following a very strong performance in 2019, the Australian equity market started 2020 in the same manner.
It’s possible that markets were factoring in some optimism on economic growth and earnings, although there is scant evidence of what the RBA Governor, Philip Lowe, described as a “gentle turning point” in the economy.
Highlighting the precariousness of markets was the volatility caused by the outbreak of the Coronavirus, which saw shares decline in late January and early February.
Over January, the S&P/ASX 200 Index returned 5.0%, led by large cap shares. The Health Care sector (+12.0%) continued its remarkable run, building to a rolling 12-month return of 54.8%.
(Lonsec, January 2020)