Good morning!
Despite the continued spread of the coronavirus over the weekend (13 new cases in England, and hundreds of new cases in Italy), the FTSE Index is currently trading near 6700, having gained 150 points versus this time last Friday.
I was checking IG’s “Weekend FTSE” yesterday afternoon. It briefly dropped below 6500, prompting me to drip a few more funds into my account there, just in case we had another spike lower.
Dripping more funds into the account was also in line with IG’s advice to customers. Unusually, it wrote a message to customers on Friday, asking them to “prepare for high volatility” and advising that there was a “risk of gaps” over the weekend.
But for now at least, bulls on the index (such as myself) are enjoying some respite.
I wonder if it has anything to do with the sharp drop in new cases of the coronavirus in its Chinese epicentre, Hubei.
Or it could just be old-fashioned opportunism. I bumped into an experienced private investor yesterday evening, who said that he had spent the entire Sunday afternoon trawling through the index for bargains, because of the “great value” on offer at the moment. Time will tell if he is right….
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