The global stock market has just had an amazing rally in April despite a looming recession ahead. Do you feel puzzled and frustrated by this? Did you sell your stocks in March or were you waiting on the sidelines?

The further we get into this global lockdown due to the COVID-19 pandemic, the clearer the extent of the economic fallout is becoming – and it is not pretty. The IMF has already stated that the coming “Great Lockdown” recession will be the steepest in almost a century. They warned that the world economy’s contraction and recovery would be worse than anticipated. Back home, MAS has confirmed that “the Singapore economy will enter into a recession this year”.

But why has there been such a disconnect with the stock market? Where is the second wave of a stock market crash that everybody was talking about? What about a 1929 kind