Recovery of the USA stocks – especially Tech

Despite the worldwide COVID pandemic – many US stocks are doing surprisingly well. Stocks have rebounded powerfully since the Covid bear market, giving newfound hope and confidence that the economy will eventually recover from this worldwide health crisis. The US elections that took place on November 3rd 2020 shook things up again with some major indexes falling, but by and large, the US stock market seems to be on the up. There does seem to be a huge disconnect between the economy and the stock market, and despite the US officially entering a recession as of February 2020, stocks, particularly tech, seem to be doing better than ever. 

It makes complete sense that certain companies offering specific technology are faring so well during the Covid crisis. Many of us are confined to home offices and technology is needed now more than ever before. Shares in Zoom, for instance, the online communications company have increased by seven times their value from the beginning of 2020. Hardly surprising, as companies use this online platform not only to host business meetings but also to keep in touch virtually with their employees. It’s also been particularly useful to connect face-to-face with friends and family during national lockdowns and vital for schools and universities to connect and communicate effectively with their students.

The ability to keep fit and healthy was and still is, an absolute necessity for many during home lockdowns. Therefore, another example of clear winners during this global crisis was companies involved in health care or exercise equipment. Case in point is a company called Peloton. Peloton is the manufacturer of an exclusive high-end stationary exercise bike. This bike gives you, the user,  access to high-energy workouts – instantly. Ideal to keep motivated to exercise, while still being cautious during the pandemic and staying at home where possible. Their shares increased in value by more than four times their original value since January 2020. 

Although the markets may have been see-sawed over the course of 2020, tech stocks have steadily increased in value with tech still leading the market this year despite the worldwide pandemic. True–the US technology factor was always to thank for the decade long bull market, but that came to an abrupt halt earlier this year amidst all the chaos with the months of April and May being particularly bad for US stocks. Tech returns are, however, soaring once again with tech stocks up by 33.4% so far in 2020.

Companies with technology offerings that assist in keeping people and businesses relevant and connected are set to soar. Think data storage companies, businesses offering cloud content management, and even companies manufacturing headphones, headsets, speakerphones and other audio products. These are vital tools which are in high demand amidst the pandemic crises. Only time will tell how the second wave of the Coronavirus will affect the USA stocks–but they’ve recovered in the past and we are certain they will do so again in the future. Hopefully, 2021 will bring some relief from the chaos that was 2020 and with the hope of a vaccine on the cards, our future could be a bright one. Watch this space.

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