The Bull Makes Its Way to the Market – As Dow hits a new record high, closing at 30,046 on Tuesday, November 24, 2020, the stage is set for the economy and the optimists to take a recovery ride. It is time to fasten your seatbelts as the bull makes its way to the market.
Whether you like it or not, the market is in for a great recovery-ride with the bull. Innovation, Science and the optimists are fueling the recovery and growth. What does this mean for you? What can you expect? How will you move?
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The Dow Jones Industrial Average (DJIA) or commonly known as Dow is a stock market index used to measure the performance of the stock market. Dow tracks the performance of 30 largest US stocks publicly owned companies that are trading on the New York Stock Exchange and he NADAQ. So, next time when you hear “the market is up” or “the market is down”, they are actually referring to Dow.
Understanding the Bull Market
Bull market occurs when the market is aggressively going up over a period of time. It is characterized by rising stock prices and the assumption that stock prices will continue to rise. When investment experts assume that stock prices will continue to rise, they are “feeling bullish”. Read more about the bull market here.
Key Points
Before the COVID-19 pandemic and the lockdown, the Dow was about 500 points shy of the 30,000 mark in February. Nine months into the pandemic, the market hits a record high, amidst the worsening US COVID situation.
- Election uncertainty got eliminated, the market responded positively as President Trump allowed the Biden-Harris Presidency transition to begin.
- Innovation and science are fueling the growth. Yes, millions of ideas are being incubated and “cooked” during the lockdown. These novel ideas will unveil as the economy opens up. Investors and the optimists know it, and this is reflecting positively on the market performance.
- People have strong hopes that the coronavirus vaccine will soon become available to the public. This expectation is boosting investor confidence and therefore, the markets.
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What to Expect as the Bull Makes Its Way to the Market
All these are signs that investors are hoping for a strong economic recovery in 2021. There may be some staggered highs and lows as we move into 2021, but the bull is taking on the market. Are you ready? How will you come out of the pandemic? How will you move?
