The world is trying to return to normal in 2021 after last year’s coronavirus pandemic. However trading activity remains anything but normal as investors flip between growth stocks, value stocks, meme stocks and cryptocurrencies.
Market Insights has striven to keep readers informed amid all the changes. Below are some of the key stories along the way.
Cryptocurrencies Surge as Institutions Jump Onboard: The cryptocurrency market achieved a key milestone by surpassing the $1 trillion size early in January. Tesla also helped spur interest by investing $1.5 billion of its cash in Bitcoin. Mastercard and Twitter also took key steps, followed by mutual-fund giant Blackrock. We also had a special report on cash-and-carry trades and covered Ethereum’s breakout to new highs.
Short Squeeze Ignites GameStop: The video game retailer soared more than 1,000 percent amid heavy discussion on Reddit. It passed Tesla in search popularity before hitting a bearish reversal pattern. The frenzy demonstrated potential risks of crowded trades.
The Economy Reopens: The comeback began in China and quickly spread to the U.S. While it’s taken some time for hiring to improve, strong underlying demand seemed to bode well for longer-term growth. There have also been inflation worries this month, plus dramatic progress on lifting coronavirus restrictions. Meanwhile, everyone’s hungry for semiconductors.
Value Stocks Take Off: After years of focusing on growth stocks like Apple, some investors have returned to value in 2021. That helped lift the financial sector above its 2007 high. It also helped Ford Motor and General Motors outperform Tesla by a wide margin.
Energy Stocks Rebounded Sharply: Energy had one of its worst years ever in 2020 because of coronavirus. The sector rebounded sharply in 2021 and remains the top performer on a year-to-date basis. One early signal appeared on January 4. Hedge funds soon jumped on the bandwagon and Market Insights profiled key names for options traders. In May, however, potential resistance appeared.