Global and most noticeably US stocks markets have become bipolar in the V-shaped recovery from the pandemic inspired lows. On the up we have technology shares, health care shares and shares, often from these two sectors, which are positively benefiting from the stay home economy. Initially investors saw the stay home effect as being short-lived. As they increasingly suspect that some aspects of a stay home economy may lead to permanent changes in behaviour they are becoming more interested in businesses, which benefit.

Years ago as a student at Oxford I read a book called ‘The strange death of Liberal England’, which was about the sudden fading of the erstwhile all-conquering Liberal party and its replacement by Labour. Something similar seems to be happening to the UK stock market, which seems to be going in the European direction of stagnant irrelevance.

The main reason why active investors don’t make as much money in the stock market as they should is because they sell too early.  Way back in the day, when I was the editor of The Investor’s Chronicle Stockmarket Letter and houses cost less than cars cost now, I noticed a common feature of people who made a fortune in the stock market. They bought shares in a great growth stock and held them forever.