tock markets performed surprisingly well in 2020, despite the March crash. Both US indexes and European stock indicators recovered and climbed near peak levels. While the Dow Jones made the trek above 31,000 points, Europe had more varied results. The DAX recovered above 13,800 points, though the FTSE 100 shed more than 11% in the past year. That said, stock markets are a riddle in 2021, showing both the potential for rapid growth, and worrying indications that a correction is due.
Market analysts are adamantly warning newly joined investors of the potential “bubble” burst in the very near future. There is a lot of focus on addressing the modern investors, who are mostly millennials and became a more visible investor group in 2020 by investing heavily in tech stock, seeing the opportunity to hedge against the potential inflation and at the same time exploring alternative investment asset classes. Some seasoned investors are saying the modern investors are just chasing a trend and playing with fire, while others believe the cohort should be taken seriously.