2020 has been full of surprises, and not in a good way. COVID-19 pandemic has changed the way every industry operates around the world. The world of finance has had its ups and downs this year, just like everyone else. Wall Street has hit incredible highs this year. But it’s also hit some significant troughs, too.
During the pandemic, some savvy investors have been able to make significant gains. People who bought stocks at lows in March and April had seen a great return on their investments by June and July. But around mid-July, things changed. Until then, stocks had been regaining some ground. Companies were coping with the pandemic. Investors realized that although things would have to change and arrive at a new normal, the market could recover.
But in mid-July, California had a significant increase in the number of COVID-19 cases. This meant that California started to put on the brakes. The state wasn’t going to reopen on schedule. Things would have to slow down, and in some cases, even reverse back to more of a lockdown model. Because California is home to so many important industries and so many millions of Americans, the stock market slammed on the brakes, too.
Tech stocks were among the hardest hit on Monday, July 13, 2020. Several big names in that industry went from gains to losses all on the same day. As the home of Silicon Valley, California’s recovery is very important to the tech world. That single volatile day of trading really helped to encapsulate the larger economic situation throughout 2020. Things will start to recover, and then something will happen. It may be that the airlines ask for help, or teachers refuse to go back to the classroom. Then investors take note, and the market dips.
However, overall, this has been a great year for anyone who has had spare cash to invest. People who wait for one of these troughs to buy stock will typically see again soon afterward. That’s because, for all the difficulties, America’s communities and industries are continuing to adapt and make progress. It seems clear that with time, Wall Street will be back to a more stable level of confidence about American businesses.