People are rushing to buy shares, even in companies that are struggling to survive, as the markets recover from the most dramatic falls since the global financial crisis of 2008.
In just one month New Zealand's top 50 index dropped nearly 30 percent from a lifetime high to a two year low, while the US' S&P 500 was down almost 34 percent.
I wouldn't be buying into the likes of Air NZ or Tourism Holdings or any of those kinds of companies and in fact I'm not buying personally at all.
My basic thesis is that we are due for some more falls. I don't think the economic damage, even human damage is known yet and that if you look from a global perspective we could yet be in for some nasty surprises and I think there'll be more waves of selling and therefore more downside in the market.
The NZX 50 is up across the month, rallying as investors grew increasingly optimistic that the outbreak has plateaued. The number of new virus cases has fallen steadily since Easter, with just three new local cases reported today.
We've seen some profit-taking across several of the large cap names following a strong month, where investors have been willing to look through some of the shorter-term headwinds from Covid-19 and focus on the medium-term value.
Investors are buying into what the company will look like beyond Covid-19.
Liz Kendall, senior economist at ANZ, noted that eliminating the virus will give New Zealand a medium-term economic advantage over those countries facing a second wave of the outbreak. However, she warned that economic damage had already been done.
"We are more cautious about the outlook than equity markets are currently pricing," she wrote in a note. "In time, we expect that firms' difficulties will become clearer and this will see a repricing of risk in markets."
Business confidence plunged to unprecedented lows in April, with half the firms surveyed expecting to cut staff.
Central bank stimulus had provided support to equity markets and investors were moving to cash in on the recovery, Trethewey said.
QUESTION: What's your outlook for 2020? What have you learnt so far?