Throughout February and March 2020, markets entered a free-fall because of COVID-19. Hindsight is 20/20, but it’s 2021 now … so we all know how this story ends. U.S. markets fell over 30% in four weeks before going on a meteoric recovery throughout 2021.
That’s why we’re diverging from our typical Rippers format today to put that rush into perspective and look at the broader market through funds.
💰Most Americans have retirement money wrapped up in funds tracking the S&P 500, which is represented by $SPY in our comparison.
💰The tech-heavy $QQQ, which is collecting big inflows as well, represents America’s tech sector and includes stocks such as $TSLA and $AAPL.
💰$IWM which represents the Russell 2000, stands in as our fund for growth stocks. It shows just how successful ‘growth’ companies were during COVID (thanks to low rates and lots of money printed).
💰Finally, shares of trendy new entrants to the market killed the benchmark – as we can see in $IPO which counts recently-IPOed companies among its top holdings.
In short, the last year has been huge for stocks even despite a global pandemic. In the last few weeks, the momentum we have seen over the last few months has been challenged by concern from bond investors. However, if the COVID crash is any indication? Let this be your reminder to stay the course.