The S&P is up over 54% since the lows in 2020. Is the rally all that is seems?
Twenty-five percent of the S&P 500 is UP UP UP . . . and is made up of only 5—YES, 5 stocks! Sixty-two percent (314 stocks) are DOWN DOWN DOWN. The fact is not all stocks are the same, especially in this ever-changing environment. Take a look at the chart below.
A little bit of history here: on February 19, a mere 121 trading days ago, the S&P 500 was at an all-time high. Since then, we have been on a roller-coaster ride with the index falling over 39% to a bear-market low on March 23. But since late March, the S&P 500 is just a little below a record close.
In fact, it has been nothing but UP in part to the government’s unprecedented fiscal and monetary stimulus. But as economies around the world reopen, consumers are stepping out to resume a “new normal” life. Spending is increasing and companies are adjusting to doing business, for now, in a Covid-19 environment.
While a full rebound is still in the future, for now investors believe our economy will continue to grow and stocks will move ahead of this present reality.
My question to you: What’s in your Portfolio? Not sure it’s right for this current financial environment? Let’s talk. Schedule a FREE 15-minute consult with me today and we’ll discuss what you can do to make sure you are on track for the future.