2020 was always expected to be a rollercoaster year, both with Brexit and a US election taking centre stage. But the unexpected Covid-19 pandemic brought many changes to the way we live and work, causing major shifts not only to our daily routines, but also to the day-to-day functioning of many businesses and disrupting the flow of the financial markets.
Which stocks fared well, while others plummeted to new lows? Which crypto experienced the most extreme peaks and troughs? And which assets proved resilient in the midst of economic turmoil? In this article, we’ll be taking a look at some of the wildest market movements of the year thus far.
Gold Gets Polished
The yellow metal tends to shine during times of market upheaval. As a safe haven, many investors look to profit from Gold when other opportunities lack. This year, however, Gold hit fresh highs even as stock prices began to recover after the March market crash. In spite of this, the asset’s price jumped to over $2,000 after a prolonged bear market. The gold market seems to be heading for another downturn as the year closes, as further uncertainty sets in.
The Year of Digital Gold
Bitcoin, and Cryptocurrencies in general, have also gained traction over the latter part of the year. As 2020 was rung in, Crypto enthusiasts had high hopes that this would mark the start of a Crypto-centric decade. They weren’t disappointed, as Bitcoin made its way up the price charts, stopping just short of its all-time high. Since then, BTC’s price has once again fallen, although the popular Crypto still reports impressive YTD profits. Who knows what 2021 will hold for Bitcoin?
Tech Stock Stars
As individuals were locked inside for most of the year, modern-day technology proved to be a saviour for many. Several aspects of life turned digital overnight, with Netflix house parties replacing social gatherings, Amazon orders taking over trips to the shops, and one too many Zoom calls changing the meaning of ‘team meeting’ forever. For a while, Tech stocks such as Amazon, Netflix and Paypal, as well as the NAS100 index came out as clear winners.
Apart from being the world’s largest automobile producer by market value, Tesla is also one of the leading global electric vehicle makers. Headed by Elon Musk, Tesla’s market value skyrocketed in 2020 to become the sixth-largest company in the US. In late November, Tesla’s market value passed $500 billion, hitting more than 30 records throughout the past year. The Silicon Valley car marker is on track to become the 7th largest company on the S&P 500 index, once it’s added in mid-December!
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