Despite 2020 starting where 2019 had left off, world markets ended February substantially lower. The global MSCI all Country World Index (ACWI) was down 7.69 per cent, while the domestic S&P/ ASX 200 dropped 8.21 per cent.
Yet earlier this week, the Dow Jones had its largest ever points gain of 1294 points, or 5.1 per cent, among a number of highly volatile sessions.
We do live in unprecedented times. I know the saying is “beware those words”, but let’s recognise that after this week’s cuts, Australian official interest rates and US rates are at historic lows.