Stonkhead: the biggest market (t)memes of 2020
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Stockhead’s biggest market (t)memes of 2020, a year like no other.
In January, seemingly overheated markets were already on edge as bears predicted a repeat of the 1999 dot-com collapse.
Then COVID happened. People hoarded toilet paper and anything in a can. Markets were a sea of red, just not for the reason many anticipated.
US oil prices turned negative overnight, with oil due to be delivered in May considered pretty much worthless.
Then came the stimulus from Us Federal Reserve boss Jerome Powell.
Rock bottom stock prices meant there were bargains to be had. Investors had a great June quarter as new cash flooded markets.
It was too good to be true. Punters were steeling themselves for a second crash …
– which never really came. Thanks J Pow.
In November, three positive vaccine development in two weeks sent markets soaring. Again.
The ASX’s brand new system crapped the bed just 24 minutes into trading.
It was unfortunate timing. The bourse was surging at the time, up 79.1 points — or 1.23 per cent.
Meanwhile, meme stock Tesla surged to stratospheric heights ahead of its addition in the S&P 500 index. No thanks to Elon.
Tesla stock price is too high imo
— Elon Musk (@elonmusk) May 1, 2020
Is this one of the biggest r/wallstreetbets gains of all time? This guy started with ~$400 bucks. Now he has almost $1m.
On. One. Tesla. Trade.
Then the Dow Jones index punched through 30,0000 points for the first time in history as investors predicted economic recovery, vaccine rollouts, and a smooth(ish) transfer of power in the White House in 2021.
In Transylvania, COUNT STOP YOU! pic.twitter.com/HclYhpUX7M
— ActionMovieDad (@ActionMovieKid) November 5, 2020
In November, the Aussie share market had its its best month in 32 years.
Despite dropping to its lowest point in eight years in mid-March, the ensuing rally through April to December put the market just a few points shy of where it started. Pure madness.
So — how do we defend markets from a pandemic? Do yourself a favour and watch this casual explainer.
Happy New Year.