2020 is right about to end in 2 days and here is the stock markets already roaring up for the beginning of 2021.
2020 seen a different dip in the Equiti market, the US economy looked to be indestructible and the country’s unemployment rate hovered at record low levels. President Donald Trump’s bid for a second term seemed to be inevitable.
But due to the widespread of coronavirus in early January, the world was hit by the pandemic crisis. By March it had reached pandemic proportions, infecting populations worldwide.
Equities plunged at record speed in mid-March; businesses were shuttered, travel came to a halt and countries went into lockdown in an effort to halt the spread of the disease. Since then, COVID-19’s case count, and number of fatalities have accelerated, reaching 82 million and 1.79 million at time of writing. But surprisingly effective vaccines were introduced at record speed and the effort to immunize whole swathes of the world’s population has already started.
Markets recovered as well, and have been repeatedly hitting new records. It was the fastest recovery on record, fueled by government stimulus and lower-for-longer interest rates.
Gold, rose to a fresh highs in August after being in the doldrums since 2011 and other precious metals such as silver, followed.
Bitcoin is currently soaring, having just this week reached a record of $28,360.30 . Commodities like Oil prices astounded investors, plunging into negative territory in late April. Still, WTI recently rose toward the $50 level on vaccine optimism, though a new COVID variant is pressuring energy once again.
2020 was indeed a roller coaster ride for the world where except the pandemic people went through disastrous natural calamities. Other headline-making events this year: wildfires in Australia, California, Brazil, and sub-Saharan Africa; a final wrap to Brexit negotiations, which came to a close with a Christmas Eve deal; protests for fair elections in Belorus; and demonstrations against racism and police violence in the U.S. and internationally; and the end of the Trump presidency in the U.S. election.
After a year long hardships, now the financial market is ready to strive the new heights in the year 2021. Investors are expecting high of 2021, let’s have a brief outlook of the coming year and see what is in store for commodities, Bitcoin, bonds, the dollar and more.
Talking about the precious metals, Gold and Silver, 2021 might see a new gains in silver which may outpace the gold’s position on the financial chart.
Global debt levels are almost approaching $280 trillion, and there’s no sign of slowing down. Meanwhile pharma giants like Pfizer have announced a Vaccines but it will take a year or so for it to come into the effectiveness . Meanwhile, businesses are a long way from getting back to normal, especially parts of travel, tourism and entertainment. As a result, expect a lot more stimulus, especially across the developed world. Central bank balance sheets will continue to swell, and fiscal deficits will grow and persist.
The Fed has shown stability and won’t be increasing until 2023, and many expect it to initiate yield curve control for longer maturity bonds. Together with big stimulus, that dramatically heightens the odds of inflation taking root.
The white metal will notice a bullish pattern. As life and the economy gradually return to normal, silver’s industrial applications will also help drive it higher in 2021. Nearly 50% of silver is used by the EVs and other technologies, and another 10% is reserved just for solar power.
Silver is expected to overtake its 2020 high of $29 in 2021, and likely head towards $37. Overall, silver is a compelling asset to own. Investors can easily buy the iShares Silver Trust (NYSE:SLV) for silver exposure. Silver miners offer great leverage to the silver price. The simplest way to play silver miners is through the Global X Silver Miners ETF (NYSE:SIL).