History repeating as equities lead the charge

A colleague of mine pulled up a chart recently on the US stock market.

It showed that equities rallied strongly before the crisis was actually over. No, we’re not talking about 2012, but 1943. From 1943 onwards, US equities recovered sharply and continued that trend through the end of the war in 1945.

I’m sure if you asked an average citizen in 1943 how they felt, you would have found that the mood was still sour. D-Day had yet to happen and uncertainty prevailed about who was winning and losing. Yet the stock market detected fundamental shifts that favoured the Allies.