Stocks bouncing back from the coronavirus collapse

This week there have been continuing signs of optimism in UK stocks, with the FTSE All Share drifting higher to chalk up a 12% gain for the month of April. It’s a welcome move after the collapse that rattled through shares in February and March. But of course, there’s a long way back for world economies; plenty of bad news could well await. Betting that markets have properly priced-in the impact of a massive economic and social shock would be brave to say the least. There’s so much still unknown. That said, it’s not unreasonable to take a view that more and more equities will start to recover from here, and some already have. While many companies have seen their earnings outlooks vaporise, others have suffered far less. In some cases it’s impossible to make accurate valuations, but in others there’s light in the tunnel, even if it’s a year or so out. For now, it seems like this sense of optimism is starting to get traction and lift the market. But in the immediate aftermath of coronavirus there are some interesting trends to pull out of the market. Especially when it comes to those stocks that are leading the…