No one could have predicted the chaos of 2020. Stocks reached a record high at the beginning of the year before concerns about the coronavirus pandemic – first abroad and then closer to home – drove US markets into a spiral in February and March. The Dow regularly set new records for the worst one-day point drop in history, and the New York Stocks Exchange had to suspend trading in the S&P 500 several times as sales caused power outages.
But in the months that followed, the market recovered – and faster than many people expected. One major factor in the boom was unprecedented action by the US Federal Reserve to stabilize markets and boost the economy.
Among the biggest winners of the year are investors who closed their eyes and muffled their ears during the pandemic sale and held their shares. By the end of the year, their portfolio balance looks pretty good.
“It’s been a year with a lot of memories for investors: number one, do not overreact,” Leo Grohowski, chief investment officer of BNY Wealth Management, told CNN Business.
At the same time, many people will look back on 2020 and fear for how well the stock market is performing in such unfavorable economic conditions. The rift between Wall Street and Main Street is likely to be a topic we follow in the new year.
With the stimulus measures recently approved by President Donald Trump and more government aid expected next year, there is plenty to be optimistic about by 2021. The election of President Joe Biden to get the economy back on track will help markets next year , even if the excitement about more stimulus could start to disappear, says JJ Kinahan, chief strategist at TD Ameritrade.
These sectors were the surprising winners of 2020
In a year of widespread and often devastating hardships, no business or industry came untouched by the Covid-19 pandemic until 2020. But for some key sectors, the news was not bad.
Here’s a list of the winners and losers compiled by CNN Business:
Wenners
- Great technology
- Housing
- Solar power
- Bitcoin
- Wholesale
- Video Games
- Cannabis
- Current
Losers
- Travel and hospitality
- Oil
- Banks
- Airlines
- Shopping Malls
- Car manufacturers
- Manufacture
- Movie Theaters
Following
Monday: OPEC + meeting
Tuesday: US ISM Manufacturing Index; German employment data
Wednesday: Jefferies earnings; Federal Reserve minutes; EIA crude oil stock
Thursday: Bed Bath & Beyond, Carnival, Conagra, Walgreens Boots Alliance and Micron earnings; EU inflation; US initial claims
Friday: U.S. work report; EU unemployment