When Crisis Breeds Opportunity

The landscape of investing has been fundamentally altered by continuous monetary stimulation from central banks. A historic plummet of 20% in British GDP in August 2020, which would traditionally incite investor panic, instead led to a 3% rise in the London Stock Exchange shortly after the announcement. This counterintuitive response indicates that investors have adapted to expect central banks to react to economic downturns with increased money printing, creating a cycle where downturns present buying opportunities rather than causes for alarm.