US equities hit record highs at the end of the year, following a turn of events that few would have predicted, limiting a banner year in everything from option betting to
Concerns about the rapid spread of coronavirus in the first part of the year have led to falling stocks, gold and bonds and triggered spasms in secure historical markets, such as money market funds. The massive stimulus package of the Federal Reserve and, later, the news about a vaccine, sparked a simultaneous rally in different markets. The moves were supported by an enthusiasm for investment that has not been seen for decades, as people of all ages jumped on the market to make their moves wild.
Shares rose in 2020. After throwing themselves into a urine market – defined as a drop of at least 20% – a new bull market emerged, one that ran to new highs faster than ever. The S&P 500 rose 16.3% to end the year on record, while the Nasdaq Composite gained 44%, the best year in 2009.
The pandemic “put the US economy and markets on the biggest bust-to-boom roller coaster we’ve seen,” said Jim Paulsen, chief investment strategist at Leuthold Group. “It made people throw a lot more when it collapsed – it made them chase their assets on the road.”
Here are five investment trends that have grown in 2020, defying the expectations of many market watchers. If they continue, he can decide a lot about the investment world in 2021.