Commentary

Keep an eye on cyclical, growth plays as recovery begins

Tech stocks, and those with strong balance sheets and businesses, could benefit

New: Gift this subscriber-only story to your friends and family

Was the sharp pullback on Wall Street that wiped out around US$2 trillion (S$2.8 trillion) from the market a new major correction or a blip? That is the million-dollar question investors were pondering in the wake of the sharp correction last Thursday which saw key Wall Street indexes plunge almost 6 per cent.

Still, a 12-week gravity-defying rally has lifted New York stock markets over 40 per cent since late March while the Straits Times Index rose about 27 per cent to a high of 2,800 points last Wednesday before giving back some ground. But it still closed on Friday 22 per cent ahead since March.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on June 15, 2020, with the headline Keep an eye on cyclical, growth plays as recovery begins. Subscribe