Why is there so much boom in stock markets around the world?

Stock markets : Millions of people around the world have lost their jobs

They have to pay unemployment allowance to the government due to their stay at home.But, after the fall in March last year in 2020, the Stock markets has bounced.

The share of technology company Nasdaq was up 42 percent by the end of last year. This was the biggest boom in America.

The S&P 500 shares went up 15 percent in a year. However, the UK Stock Exchange Index FTSE 100 was not in such a good condition due to oil companies, banks, airlines struggling due to the Corona epidemic.

It declined 14 per cent from the beginning of last year but has grown rapidly in the last few months and has seen a big boom after a trade deal with the European Union and the vaccine was approved.

Once the vaccine was created in Japan, the stock market again saw a boom. Shares of pharmaceutical stocks and gaming companies were ahead. However, the assessment of stock market performance does not reflect this entire process.

Stock markets : Cheap money

Sue Nofka, head of UK equities at money manager Scröders, says, “One important thing is that the stock market prices are not just a matter of time but the stock market is like driving a car in which the eyes see the distant goals and not the Right in front of the pit. ”

Five big companies

When we look at the performance of the market, we usually look at the index consisting of groups of companies. The growth of large companies has a greater impact on index value than the performance of small companies.

Ten year trend