This year the stocks closed at a 16% high percentage that is below the expectations set for the year 2020, but still, it is in double figures. An overall 16% rise was seen in the reinvested dividends with S&P 500 seeing a record high closing.
The companies which have just entered the S&P 500 performed much better. One of the highlighting performances relates to Tesla, which is one of the new entrants in the S&P 500 lot.
NASDAQ was seen lagging, but its Year-to-Date rise was strongest among the lot. The COVID-19 situation has left the companies struggling to even make it to the gain in double figures.
Amidst this critical situation, Amazon outperformed every competitor. They were considered the best performers of the S&P 500 companies.
It is good news indeed that the economy is recovering. There has been a surge in the market, but still, it is not as high as compared to 2019.
The US economic output is still low because of the entire COVID-19 situation in the country. Many small businesses suffered, forcing millions of Americans to lose their jobs eventually.
The American government has announced a new stimulus package for the public and businesses which will bring some relief.
The bullish trend in the S&P 500 index was all down to the effects of the fiscal policy. It is believed that the bullish trend will continue in 2021 as well.
Online streaming platforms fared much better this year. All the E-Commerce businesses experienced growth during this pandemic as employees were asked to work remotely.
The trading figures will be high in 2021 as expected by LPL Financial. A 10% gain in just two months is a record high since the Second World War.
The prices will be higher the next year and a similar bullish trend is expected in 2021. The sharp advances at the end of 2020 will straighten out and the market will adjust accordingly.