The American consumer, whose spending accounts for nearly 70% of the US economy, should be increasingly healthy as 2021 unfolds. A healthy consumer generally means a healthy US economy, and this should translate into a healthy stock market in 2021.
Well, that is one year we’re glad to see in the rearview mirror. And yet the pandemic’s toll of human suffering continues to be staggering. With highly effective vaccines now being distributed globally, there’s light at the end of the tunnel. While the worst stretch of the pandemic likely lies ahead, the end is still in sight.
A New Year’s Day article in the New York Times attempted to answer a question that many investors have asked themselves: “Why Markets Boomed in a Year of Human Misery.” Why, indeed? Because markets did boom as the S&P 500 returned 18% for the year, and the MSCI Global Index gained 16%. In this treacherous environment, our domestic 350 equity strategy returned 21% in 2020, and our Arjuna Global equity strategy was up 26%. So, why did stocks do so well last year?
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