Time to say goodbye to 2020!

Tradehay.com: 31/12/2020 - 10:21

This looks like a quiet end to a turbulent year. Most of the European markets were closed. FTSE 100 futures fell while Sterling celebrates the Brexit issue being settled - but it's not known how long it will last, as trade disruptions await on the other side of the New Year celebrations.

2020 is a year of many milestones. That's when betting on economic data is not a winning strategy, even worse than rolling the dice. Huge US tech stocks expanded to account for nearly a quarter of the S&P 500, from 17% a year ago; when Amazon and Apple are gearing up to record ~ ​​80% gains this year, it is nothing compared to Tesla's 730% gain.

This year also pushed burgeoning market shares close to 2007 peaks, with the DXY Index poised to record the biggest annual decline since 2017, pushing the Treasury Bond ETF up 16% and bond yields. High risk European countries' votes hit record lows, and negative yield debt rose to $ 18 trillion .

Of course, there are many potential risks. The market is overvalued and global debt is up to 365% of GDP. However, "don't go against the Fed" has found new meaning this year, making the strategists' stance tilted toward the 'bullish' for 2021. There are many inexplicable things about asset prices during the year. Now, but also a lot of things going according to forecast. Next year, the balance may shift in the other direction. But for now, let's celebrate that 2020 is finally coming to an end.

Laura Cooper, Bloomberg