Major Stock Indices close the year 2020 almost at record highs following a major resurgence on the back of record stimulus. This year, American companies with a Tech-focus have outperformed, with the tech-heavy NASDAQ growing by 43.3% YTD. Despite an economic shutdown of unprecedented magnitude, nothing seemed to stop the bull market post March.
Optimism, financial stimulus, and a lack of opportunities in the bond markets driven by low yields has enabled the bear market of March to recover in record time. But while 2020 did include a record breaking recovery for markets, 2021 will answer the question of whether or not it is sustainable.
What do you think? Has the Market become completely detached from the economic reality or did fiscal policy, innovative ways of working, and optimistic sentiments throughout spare a bigger economic recession?