The ball has finally dropped and we can put 2020 in the rear-view. But before we look toward 2021, it’s important to know where we’ve been and do a proper 2020 stock market review.
My good friend and Joy of the Trade Head Trader, Jeff Zananiri and I sat down for our final mid-week roundtable of 2020.
The year — and the world — were rocked by the COVID-19 pandemic. We were set on a course we couldn’t have imagined.
The highlight of any 2020 stock market review is going to be the success of the stay-at-home stocks. Fueled by the coronavirus crisis, companies like Zoom Video Communications Inc. (Nasdaq: ZM) and Peloton Interactive Inc. (Nasdaq: PTON) found surprising success.
To go with that, we saw one of the most divisive elections ever, shortly followed by the dropping of the biggest initial public offerings of the year.
Then, of course, Tesla Inc. (Nasdaq: TSLA) was added to the S&P 500… And the year’s still not done.
Bitcoin USD (BTC-USD) and other cryptocurrencies can now be bought, sent and held over PayPal Holdings Inc. (Nasdaq: PYPL). Russel Okung, an NFL offensive linemen, recently became the first NFL player to be paid in Bitcoin.
2020 Stock Market Review Take-Aways
Reviewing the year is pointless if we don’t use it to our advantage in the new year.
So we need to ask some questions: What surprised us about 2020? Will those trends continue? And, of course, what do we expect from 2021?
Jeff and I were able to make some personal predictions about 2021. There might be some that we laugh at, but we have some good predictions.
One thing we’ve both seen in this 2020 stock market review are some red flags.
Looking at the indexes, there are a lot of similarities to what we were seeing in March before the pandemic. COVID-19 altered the course and drove a bullish, if volatile, market — especially in the Nasdaq.
Another red flag Jeff is seeing, and keeps seeing, is how comparable this bubble is to the one we saw in the early 2000s. He keeps talking about this, but those trends keep going…
For broader trends and our crazy predictions, close out your year with Jeff Zananiri and me as we give our 2020 stock market review.
