AlternativeSoft
hero

Company News

Best Performing Indices during Covid-19


Covid-19 has thrown the financial markets into disarray and uncertainty. Brokers and investors need to use every tool at their disposal to optimise their returns, which is where platforms, such as AlternativeSoft, are so useful.

If we look at the numbers since the pandemic began to really impact the markets, we can see that since the S&P 500 bottomed out on 23rd March 2020, the best performing index has been Bitcoin 1, delivering a market beating return of more than 129%.

Previously 2, we saw that the best investments during currency devaluations were gold and the stock market, even during an economic crisis 3. Likewise, the indices below show that growth equities, gold and Bitcoin have performed well during the current economic crisis.

Best Performing Indices during Covid-19
Table 1 Indices returns during 23 Mar 2020 – 06 Nov 2020
Return (USD) Remarks
Bitcoin 129%
Best long only fund, AUM> US2b 4 114% Morgan Stanley Discovery Fund, 01 Apr 2020 – 30 Oct 2020
Apple 112%
Best hedge fund, AUM> US2b 52% Cadian Fund, 01 Apr 2020 – 31 Sep 2020, Oct 2020 not available
ETF Russell 1000 Growth 75%
Amazon 74%
Nasdaq 73%
S&P 500 57%
Gold 25%
RUB/USD 4%

Source: AlternativeSoft, Internet data, HFR, Eurekahedge, Morningstar


The question now of course, is, where do we expect these indices to go in the next six months?

One of the biggest factors here will be the result of the US election. Following Joe Biden’s success on the 07 Nov 2020, we expect USA economic policy will be to print more USD5 . This will probably come in the form of a stimulus package to prop up US wages, help those furloughed, keep businesses afloat and fund unemployment/social welfare for those made jobless by the pandemic.

As a consequence, we can safely understand that investing in gold, bitcoin and growth stocks will continue while money is still pumped into the US economy. When that ends, investors will have6 a maximum of 12 months to pull out their investments from gold, equity and Bitcoin. At that time, investors may have to implement a new investment strategy. Yet again, investors will be on the lookout for the best sources of analysis and software to secure their next high performing investment.


To trial a truly powerful analytic solution for investment decision-making, visit alternativesoft.com, telephone +44 20 7510 2003. Alternatively, email information@alternativesoft.com


1 In fact, the best index in foreign currency is the Caracas Venezuela IBC Equity Market Index with +492%. But in USD, the IBC Index drops to -23%.

2 Published 09 Sep 2020: https://www.linkedin.com/posts/alternativesoft_why-is-the-equity-market-going-up-and-where-activity-6710110663227846656-7lte

3 We showed that before and during the crisis, these three investments are the best. We showed that after the crisis, Gold and stock market were still the best investment for as much as 12 months later.

4 I selected ‘fund assets under management’ larger than two billion USD as it is an easy selection for a company selecting funds. We searched for funds in USD, CHF, GBP, EUR, and JPY only, excluding bitcoin hedge funds. There are 887 hedge funds and 6977 long-only funds in these 5 currencies, with AUM larger than US$2bn, including different share classes.

5 Democrats mentioned a new USD2.2tr, www.fortune.com

6 Not an investment recommendation, but an expectation using historical indices behaviour during currencies devaluation.


Request Your Web Demonstration

By submitting this form you have read and agreed to our privacy policy.

*For qualified investors only

Office Location

81 Farringdon Street, London,
EC4A 4BL

Phone

+44 20 7510 2003+1 917 791 2237

Social Address