LESSONS FOR INVESTORS FROM THE STOCK MARKET 'YEAR COVID'

During the terrible sell-off in March 2020 because of the pandemic, few would have thought that it would be a successful year for the US stock market.

The US stock market on December 31, 2020 simultaneously gained and broke historic peaks. The Dow Jones Industrial Average rose 197 points, or 0.7%, to end 2020 at a historic high of 30,606 points. The S&P 500 index hit a new peak of 3,756 points, up 16% year-to-date. Compared to the bottom set on March 23, this index increased by nearly 70%.

Initial public offerings (IPOs) are also flourishing. Just a few weeks ago, Airbnb had such a great stock market debut that its executives were speechless during a televised appearance.

This is something that can be easily visualized in a period of economic development. But the reality is, the stock market euphoria is back in 2020 - a year in which a catastrophic pandemic has claimed the lives of more than a million people, disrupted business, travel and wreaked havoc. global economy.

While there are many reasons for the market euphoria, many of which have been attributed to the intervention of the US Federal Reserve, the market's astounding recovery remains puzzling for many. many investors.

"The path we've come to now is one that we never anticipated," said Ralph Bassett, head of North American equities at Aberdeen Standard Investments.

And here are the lessons investors say they've learned from an unforgettable year.