Twitter Strength in Final Week of 2021, Caps Bullish Year for Stocks Story
At the time of writing, the major stock indexes are on track to post robust gains in December, capping a solid year for the market. Despite some big swings in 2021, at the time of writing, the S&P 500 is on pace to gain more than 27%.
That would put it better than 2020 but not as much as 2019 which was also a super year for the stock market. The heikin ashi chart of the S&P500 shows just how strong the uptrend has been during 2021.
Worth a mention is the crypto market which started with optimism and expectations for the Big Daddy, bitcoin at $100K but those hopes soon faded. IMHO, I think with rising inflation and interest rates, crypto investors are putting money into cash and away from more speculative investments.
This year, a surge in consumer demand fuelled by the economy's reopening boosted corporate profits more than expected, keeping investors in a buying mood. The Federal Reserve also aided by keeping interest rates low, making it easier for companies and consumers to borrow money.
The market's gains occurred amid several economic challenges, including soaring inflation, global supply chain disruptions, and COVID-19 virus outbreaks with more contagious variants.
Concerns among investors about the Omicron variant have subsided in recent weeks after researchers said it appears to produce fewer severe symptoms and President Joe Biden avoided declaring travel or other restrictions that may stifle economic activity.
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