Nigel Green, chief executive of deVere Group, said investors were already shrugging off negative economic data and going back into the market which had caused an upswing in the past few days.
Since 21 April, the ASX 200 had risen 5.8% although it remained down 16% since the start of the year.
Green said: “We’re witnessing what is likely to become a powerful recovery in global stock markets as investors look ahead to the latter half of 2020 and into 2021.
“Investor exuberance is contagious. As the markets move steadily higher - unfazed by the recent poor economic data from the peak of the pandemic – it can be expected that the uptick will further sharpen due to that powerful investor sentiment: FOMO.
“The Fear Of Missing Out will drive many investors off the sidelines. With a recovery on its way, they don’t want to miss out on the current value in the market long-term, with has the effect of driving markets higher.”
This sentiment was boosted by reports of more COVID-19 recoveries, easing of lockdown restrictions and actions by Governments and central banks to support the economy.
“Investors know that the closer we get to a COVID-19 drug, and the more economies are reopened, and as trillions and trillions from stimulus packages kick in, the more the rebound will take hold - and they don’t want to miss the boat.
“With investors gaining confidence, a V-shaped post-pandemic economic revival is now being priced in.”
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