Stock markets suffered a sharp plunge into a bear market in March, taking share prices and valuations for numerous companies down to 10-year lows.
However, in the five months since, markets have rebounded somewhat.
The Straits Times Index (SGX: ^STI) touched a low of 2,233 back in late-March but has gone up around 13.5% since then.
In the US, the major indices have gone on to scale new all-time highs, even as job losses mount and the economy is poised for a deep recession.
The pandemic, in the meantime, has seen no signs of abating.
Apart from China, where some semblance of normalcy has been restored, many other developed countries are still grappling with community spread and the second wave of infections.
Should investors wait for another major plunge in stock markets?
Here are three reasons why I believe we will not revisit the lows witnessed in March.
The “shock” factor has passed...