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Explaining the mismatch

Investment markets have been on a rollercoaster ride following the outbreak of the COVID-19 virus. The S&P/ASX200 in Australia reached its 12-month peak on 20 February 2020 before suffering a huge 38.8% fall over the next 22 trading sessions to 23 March 2020. Since then the index has staged an impressive bounce back and is currently trading just 16.7% below its 12-month peak. Similarly, in the US, the Dow Jones Index is currently trading at only 6.8% below its 12-month peak.

A review of the various indices shows the sectors which suffered the biggest falls were also the ones to experience the greatest gains since 23 March. The six sectors below which underperformed on the downside, all outperformed on the upside. This includes Property Trusts, which suffered a 49.5% decline, but has since staged a bounce of 48.3%. The Property Trust index remains 24.8% below its 12-month high. The table below shows the key indices and their biggest falls as a result of COVID-19 and the bounce to current levels.