From a pandemic-induced crash that became the fastest sell-off in history, to a tech-fuelled rally that drew parallels to the dot.com bubble, the global stock market was taken on a rollercoaster ride like no other in 2020.
Here, Opto looks back at some of the biggest investment stories from each month.
January
Will passive investing consume active in 2020?
As 2020 got underway, Opto explored the shift to a passive investing strategy and whether it would continue in the year ahead. As megatrend funds — focused on global challenges, including urbanisation, healthcare and technology disruption — continued to launch, the draw to thematic approaches intensified in the US.
February
How has COVID-19 impacted healthcare and biotech stocks?
After the coronavirus pandemic wreaked havoc on global markets in January, Opto analysed the historical performance of some of the biggest biotech and healthcare stocks to gauge investors’ responses to global healthcare emergencies. The healthcare sector was a mixed bag in February, but many biotech stocks soared, with companies like Abbott Laboratories [ABT] and Gilead Sciences [GILD] leading the way.
March
How the Dow Jones broke an unwanted record
Wall Street’s longest bull run crashed in March, when major indices suffered the fastest sell-off in history. Global lockdowns were put in place as governments took measures to quell the spread of the virus and economies around the world struggled. In this article, Opto considered some lessons from history.
April
As the virus continued to transform global economies, a growing reliance on technology and delivery services began to surface. The demand was so high that it propelled stocks such as Amazon [AMZN], Peloton [PTON], Ocado [OCDO] and Zoom [ZM] to new heights.
May
How COVID-19 sank cruise liners
As people were stuck in their houses the world over, the fleets of Norwegian Cruise Line [NCLH], Carnival [CCL] and Royal Caribbean Cruises [RCL] were left to gather barnacles and airlines across the globe grounded their planes. As a result, travel stocks emerged as one of the worst-performing sectors of the market, with many short-sellers taking aim.
June
Luckin Coffee — a cautionary tale for investors?
After just a year on the Nasdaq, Luckin Coffee [LKN] was promptly delisted for accountancy malpractice, which originally emerged in April. As one of the most shorted stocks at the time, Opto explored how the scandal toppled the Chinese coffee giant’s share price.
July
The revelation that Wirecard could not account for almost €2bn in cash sent the stock into free-fall in July. The German payment provider became one of the most shorted stocks on the market as a result. Short-selling dynamo Fahmi Quadir, founder of Safkhet Capital, had been shorting the firm since 2019.
August
What’s impacting EA, Activision, Sony and Take-Two’s share prices?
The gaming sector was a top play among investors throughout 2020. Leading gaming juggernauts such as Activision Blizzard [ATVI], Electronic Arts [EA], Sony [6758] and Take-Two Interactive Software [TTWO] saw their share prices soar, as worldwide lockdowns boosted sales.
September
Could cyclical stocks drive a post-pandemic recovery?
The tech-fuelled rally that pushed stocks like Zoom and Apple [AAPL] to new all-time highs faltered at the start of the September. Investors had been piling into work-from-home stocks until a much-needed correction followed. In this article, Opto considered whether cyclical stocks would prop up the market during its recovery.
October
What history shows about US elections and the stock market
The 2020 US presidential election sent waves through global stock markets. While Donald Trump touted claims such as “the reason our stock market is so successful is because of me”, investors considered how markets would react to Democratic Party candidate and Trump rival Joe Biden. In an effort to provide readers with some context, Opto provided an overview of how the markets performed under various presidents throughout history.
November
Will Tesla’s share price accelerate in 2021?
The long-awaited announcement that Tesla [TSLA] would finally be allowed to join the S&P 500 electrified investors in November. The stock had been on serious surge throughout 2020 and its inclusion into the blue-chip index was the biggest on record. In this article, Opto analysed the stock’s performance and its recent projects.
December
How AstraZeneca, Moderna and Pfizer’s share prices are racing ahead
As the year drew to a close, and much like the year started, the outcome of the coronavirus pandemic was at the forefront of most investors’ minds. The vaccine race remained a focus of much market coverage and those companies leading the way with vaccine candidates such as Pfizer [PFE], BioNTech [BNTX], Moderna [MRNA] and AstraZeneca [AZN.L] held many investors’ attention. Many of them have garnered some bullish calls for 2021.
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.
Continue reading for FREE
- Includes free newsletter updates, unsubscribe anytime. Privacy policy
