Ever since last Thanksgiving, a lot of things have happened in the markets, and even that might be an understatement. Some have been good, some have been bad, but the past 365 days have been historic, so let’s go through market events that we can be thankful for this year.
First was the presidential election. We all knew that Trump or Biden would have different effects on the market, but all we wanted was stability in the ongoing market rally no matter who won the election. Fortunately for us, this occurred, and the market has continued to rise by almost 50 percent since the week before the election, providing us with some hefty gains in our portfolios, fantasy or real.
Second was the historic meme rally we saw in the beginning of the year. Through a post on the subreddit WallStreetBets, retail traders were able to short-squeeze stocks like GameStop and AMC, which were nearing bankruptcy, shooting their share prices up thousands of percent and saving them from filing the Chapter 11. This led to a major government debate over brokerage firms, hedge fund rules, and it showed the true power of retail traders. Most importantly, it left some of us with crazy gains, with some accounts doubling in a couple of hours itself.
Lastly, the Federal Reserve has been nice regarding monetary policy. People believed that the Fed would raise interest rates as we reached pre-pandemic levels, and this was a likely possibility. However, Jerome Powell, the chair, concluded that now was not the right time, and this helped add more fuel to the market. Through policy, they guided us through the first spike of inflation, and even though there is another one right now, it’s likely they’ll guide us through. All of this has added up to green in our baskets of stocks, and it’s great that the markets have treated us well this year, so let’s be thankful for that. Is there anything else you are thankful for in the financial markets?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.