Stockbroking analysts have been frantically upgrading their recommendations for individual ASX-listed stocks in Australia as the share market underwent unprecedented volatility last week. The interesting part of that sentence is that, while it looks like I am exaggerating just a little bit in my choice of words, the fact is there is not even a hint of hyperbole in it.
As every battle-hardened industry veteran will tell us, a 13% turnaround in Australian indices within a matter of hours has simply never, ever, happened. Never. Ever.
For investors, it's good to keep in mind we are living through truly historic moments and those analysts do not have the superpower of foresight. They are trying to assess what share prices should/could be worth under less extreme circumstances, and with less uncertainty about the ultimate economic fall-out from this year's pandemic, but that's about it.