NewsSaying goodbye to a wild year for stocks

Saying goodbye to a wild year for stocks

-

Nobody could have predicted the market mayhem of 2020. Stocks hit record highs at the start of the year, before worries about the coronavirus pandemic — first abroad and then closer to home — pushed US markets into a spiral in February and March. The Dow routinely set new records for worst one-day point drops in history, and the New York Stocks Exchange had to suspend trading in the S&P 500 multiple times as the selloff triggered circuit breakers.

But in the months that followed, the market recovered — and faster than many had expected. One major factor in the surge was unprecedented action by the US Federal Reserve to stabilize markets and boost the economy.

Some of the year’s biggest winners are investors who closed their eyes and muffled their ears during the pandemic selloff and held onto their stocks. By the end of the year, their portfolio balances were looking pretty good.

“This year was a year with a lot of reminders for investors: number one, don’t overreact,” Leo Grohowski, chief investment officer at BNY Wealth Management, told CNN Business.

At the same time, many people will look back at 2020 and be startled at how well the stock market performed in such adverse economic conditions. The disconnect between Wall Street and Main Street will likely be a topic that follows us into the New Year.

America’s economy is nowhere near back to its pre-pandemic strength and millions of people remain unemployed. The US economy is operating at 82% of where it was in early March, according to the Back-to-Normal Index from Moody’s Analytics and CNN Business.

With the stimulus measures recently approved by President Donald Trump and more government help expected next year, there is plenty to be optimistic about for 2021. President-elect Joe Biden’s plans to get the economy back on track will help markets next year, even if the excitement about more stimulus might begin to fade, said JJ Kinahan, chief strategist at TD Ameritrade.

READ  Self-driving robotaxis are taking off in China
READ  This is what occurs if Trump would not signal the $900 billion reduction package deal

These sectors were the surprise winners of 2020

In a year of widespread and often devastating hardships, no business or industry came through 2020 untouched by the Covid-19 pandemic. But for some key sectors, the news wasn’t all bad.

Here’s a breakdown of the winner and losers CNN Business put together:

Winners

  • Big Tech
  • Housing
  • Solar
  • Bitcoin
  • Big Retail
  • Video games
  • Cannabis
  • Streaming

Losers

  • Travel and hospitality
  • Oil
  • Banks
  • Airlines
  • Malls
  • Automakers
  • Manufacturing
  • Movie theaters
Check out the full story on CNN Business for analysis on what comes next for each sector.

Up next

Monday: OPEC+ meeting

Tuesday: US ISM Manufacturing Index; German employment data

Wednesday: Jefferies earnings; Federal Reserve minutes; EIA Crude Oil Inventories

Thursday: Bed Bath & Beyond, Carnival, Conagra, Walgreens Boots Alliance and Micron earnings; EU inflation; US initial claims

Friday: US jobs report; EU unemployment

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

BTC Worth Predictions At present and for the Future

It wasn't so way back that the value of Bitcoin reached a brand new file excessive. It went previous...

Things To Do Before You Apply For A Debt Consolidation Loan

There comes a time in most of our lives when we need a loan. Whether it’s to repair a...

Twitter blocks posts in India critical of Narendra Modi’s Covid-19 response

In a statement Sunday, India's Ministry of Electronics and Information Technology said it had asked Twitter (TWTR), Facebook...

Chadwick Boseman didn’t win the best actor Oscar

They may want to consider a reshoot of the ending.Chadwick Boseman had been heavily favored to win in...

See all the Oscar winners

Below is a complete list of nominees. Check back for updates on all the winners throughout the night."Mank""Minari""Nomadland""Promising...

At least 82 killed in massive Baghdad hospital fire

Another 110 people were injured in the blaze at Ibn al-Khatib Hospital, according to ministry spokesman Major General...

Must read

BTC Worth Predictions At present and for the Future

It wasn't so way back that the value of...

Things To Do Before You Apply For A Debt Consolidation Loan

There comes a time in most of our lives...

You might also likeRELATED
Recommended to you

Translate »
Skip to toolbar
Read previous post:
Opinion: America can’t hide from this drastic reckoning

I ask as an American citizen concerned about our damaged democracy but also as someone with roots in Chile, which...

Close