Hang in there just a few more weeks and we’ll be out of this crazy year. Will the flip of the calendar really make a difference? Not really, in the sense that there’ll always be some crisis du jour the mainstream media won’t let go to waste.
But most of us will probably feel better about things just because the calendar says it’s 2021. We find comfort in categorizing events by calendar years. Who can forget New Year’s Eve 1999. Y2K. We were doomed when the year rolled over to 2000. Now we look back and laugh at how silly that was.
Do you think we’ll look back and feel the same about 2020?
For a lot of it, probably yes. But you should feel proud as well. Proud of yourself for the discipline you showed when it came to your investments this year.
Despite a record drop in March, followed by a record recovery, you didn’t flinch. Well, maybe you thought about it. But you didn’t pull the trigger. Instead you held steady and stayed the course.
And quite a course it was in November. Progress on a Covid vaccine helped lift stocks. Even pandemic battered energy companies, banks, and cruise lines posted big comebacks.
The Dow had its best month since 1987, rising 12% in November. Even closing above 30,000 for the first time ever.
The S&P 500 rising 11% for the month.
And NASDAQ up a dozen percentage points as well.
And an often overlooked stock index, the Russell 2000, jumped 18% in November, its best month ever. The Russell 2000 is an index of small, US-based companies.
With just a month to go in 2020, here’s the year to date tally if you’re scoring at home.
The 30 blue chips up nearly 4%.
The 500 a touch past 12%
NASDAQ an impressive 36% year to date.
And since I brought it up, the Russell 2000 up 9% on the year.
The December season is historically a good one for stocks. But 2020 is not over yet, and if you listen to mainstream media, anything could still happen, and of course they hope it will.
Of course, we’ll stay the course, learn from the past, focus on the future, and be grateful for today. May God continue to bless you this holiday season.