The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search

Financial Thaimes: Watching the COVID high

Financial Thaimes: Watching the COVID high

Believe it or not, investment markets are at an all-time high. Sounds hard to believe doesn’t it, considering that the world is in the middle of a pandemic where we are seeing endless amounts of people dying, losing their jobs, salaries being halved or lost and businesses going bankrupt by the day. Yet, the S&P 500, an index of the 500 largest companies in America, is sitting at 3,484 (28/8/2020), higher than its all-time high of 3,394 from February this year. 

By Wiliam Frisby

Saturday 29 August 2020, 11:00AM

Keeping your money safe from the COVID fallout might require some pre-emptive action. Image: Vector Stock Images

Keeping your money safe from the COVID fallout might require some pre-emptive action. Image: Vector Stock Images

As America is the world’s biggest economy, the S&P 500 is an important measure of how well the global economy is performing. So, if you were to land on earth from a different planet, you would be well within your rights to believe that the world’s economy is in a really good position.

How is this possible? Good question… 

Tech and healthcare companies make up a large part of the S&P 500 and COVID-19 has been very positive for these sectors. eBay and Amazon are making billions out of our locked-down lives. In July, Jeff Bezos added US$10 billion to his net worth in one day. Also, the hardest-hit industries like hotels, restaurants and airlines make up a slim portion of the S&P 500 index, so their misery is having little effect on its performance. But in our opinion, this isn’t the real reason why the S&P 500 is so high. 

For years we have seen the markets not truly reflect the state of the world economy and what we are seeing here is no different. Financial markets work on confidence and the influx of investors money. When they crash, like they did earlier this year, it creates an opportunity for investors to buy stocks at enormous discounts. Imagine walking past your favourite shop and there is a 50% sale on, you’d run in and buy as much as you could afford right? This is precisely what happened to markets this year and we are still riding this wave of confidence. But, as we reach all-time highs again is this where we might see another watershed moment?

Why don’t we just invest in tech and healthcare companies then?

The simple rule of investing is: buy low, sell high. At present, a lot of these companies are at a high. Amazon has seen incredible success this year, which couldn’t have been predicted to this extent. But tech companies are fragile as it is one of the fastest moving spaces in the world. Look back at the 1980s when Sony and Japanese technology ruled the world. Today, Sony and the Japanese economy are now a mere shadow of their former selves. What happens if Jeff Bezos or Elon Musk are struck by lightning tomorrow? We have seen how the loss of an inspirational leader can result in years of failure with companies like Manchester United following the retirement of Sir Alex Ferguson. Picking individual stocks is so difficult and too risky for normal mums and dads.

The health sector again is also at a very fragile stage. Currently, hospitals are full, drugs are being sold by the shipload and everyone is trying to create a vaccine. If one company develops the vaccine tomorrow then that company will make billions overnight. But the pharmaceutical companies that did not create the vaccine will have massively over-invested into a failed endeavour. Do you know which company has the magic formula for the vaccine? 

Is there a crash around the corner?

If we go back to the S&P 500, then we believe that there is potentially a very big crash around the corner. At some point, the markets have to realise what condition the world economy is in and a correction will happen. It is the job of big banks, investment houses and pension providers to protect their clients and shareholders money and this could result in a massive sell-off, resulting in share prices falling by the second.

What should I do?

Realign your investments. There are investment funds that make money when markets head south and there are also investment managers who are good enough and fast enough to react appropriately to market changes. But, you can only take advantage of their skills if you move your investments before the crash happens.

If you are invested, have a pension or own anything related to the financial markets, you need to speak to a professional today before it’s too late.

For more information on how we can help you with your financial planning then please contact William Frisby at or you can email me at

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.


Be the first to comment.


Have a news tip-off? Click here


Phuket community
Phuket international school dodges charges for illegally hiring British teachers

The international school committed a crime. Col Sarawut stand is astonishing. If such a stand not gi...(Read More)

Prime Minister to weigh in on legalising gambling

Change Government thinking, like S'pore did in the past. Have Government casino's. Good sour...(Read More)

Phuket officials put illegal dumping on the agenda

Galong is correct. So many problems could be resolved if there was a a government agency that actua...(Read More)

Phuket Heroines Festival reduced to merit-making activities only

Merit doing from heart is fine. Regimental Merit doing just for continues repeating compulsive cont...(Read More)

Phuket international school dodges charges for illegally hiring British teachers

Well, just the bar scene only around the corner of Chalong police station is already a big legal que...(Read More)

Tourism fee to help insure foreigners visiting the kingdom

Will be interesting to know what that B34 medical insurance is covering. Guess Government didn't...(Read More)

Tourism fee to help insure foreigners visiting the kingdom

The foreign tourist pays already, 1: Airport tax ( in ticket) 2: Accommodation/hotel tax. 3: 14 Days...(Read More)

PHUKET XTRA: VIDEO: Coming soon: Tourism fee for international visitors! || January 15

This is just plain stupid. There are so many reasons, mostly obvious, that I’ll not even comment m...(Read More)

Tourism fee to help insure foreigners visiting the kingdom

Just goes to show how shallow and in competent the stocks are on the Thai government. The tourism mi...(Read More)