What Can the Best/Worst Stocks of 2021 Tell Us?

Maura Schauss |

Looking for longer-term market trends that might shape the next few years

Let’s be honest for a second: the DJIA, the S&P 500, NASDAQ and the Russell 2000 all delivered one of the most surprising years in recent history. And while many are happy to see 2021 in the rear-view mirror, the 2021 performance for the major U.S. indices was nothing short of impressive, especially given the headwinds of COVID-19.

Who could have predicted that:

  • The DJIA would rise 18.7%
  • The S&P 500 would rise 26.9%
  • NASDAQ would rise 21.4%
  • The Russell 2000 Index would rise 13.7%

As we enter 2022, there will be no shortage of talking heads trying to scare investors that we might be in a stock market bubble. And they might be right. But the flip-side is that there are just as many talking heads suggesting that stock markets still have plenty of room to grow, and that this time it really is different. The reality is that it’s a topic that divides some of the brightest minds in finance.

So, rather than jump down that rabbit hole, let’s instead listen to what the stock markets are telling us. Are trends developing that might shape the next few years? Has COVID-19 forever shifted the landscape of some industries at the expense of others? 

Maybe 2021’s 5 best- and worst-performing stocks from the DJIA and S&P 500 (and the best performer from the S&P 400 Mid Cap Index) can inform?

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Source: eMoney

 

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Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.  It should not be assumed that your Washington Wealth account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your Washington Wealth Advisors accounts; and, (3) a description of each comparative benchmark/index is available upon request.

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