The S&P 500 is comprised of 505 stocks. Why more than 500, you ask? Because, some companies have dual share classes. For example, Google has two share classes of stock, GOOG and GOOGL.
At this moment 300 shares in the index are positive on the year and 205 are negative.
You’ll probably never guess the number one performing stock on the year. If you guessed Amazon, Netflix or NVIDIA you would be wrong, though they are all in the top 50.
The number one performing stock in the S&P 500 YTD is Etsy, the e-commerce website selling handmade crafts and supplies. It’s up an astounding 259.44%!
The worst performing stock in the index is Carnival Cruise lines at a minus 55.36% on the year. The worst performers this year tend to be many formerly great performing companies in the Banking, Oil & Gas, Travel and Real-Estate sectors. Many will be great performers again, post-Covid.
In a few short weeks we’ll compile performance reports for 2020 and encourage conversation with all of our clients. We have spent much of the year clawing back from the market devastation in Q1.
With Janet Yellen to be Treasury Secretary and the likely continued appointment of Jerome Powell at the Federal Reserve we can expect the same easy-money approach in 2021. In fact, they both favor a low interest rate policy. Whether that can lead to continued stock market performance, above the already high levels is yet to be seen.
The next “shoe to drop” will be the result of negotiations on a bipartisan stimulus bill before Christmas.
This season has always been one of waiting and wondering, but not usually from the Congress of the United States.
Here’s to bright shiny (or at least chocolate) objects in all of your stockings this year.
— Ron
