Biggest Stock Market Surprises at the Start of 2021
We’re only a few short weeks into 2021, but already there have been some surprises in the stock market, including with some of America’s most well-known companies. Mostly, these have been upside surprises, although not all are keeping up with the market so far. These surprises are a good reminder for investors that no one can predict short-term movements in stock prices. It also points out the benefits of a diversified portfolio. While it would be great to have all your money in a stock that has already doubled, if all your money was in a stock that was down 20% instead, it could be very disruptive to your long-term financial plans.
Related: Stocks Showing the Most Promise at the Start of 2021
Before you pile into a stock that’s shooting higher — or scoop up shares of one that has fallen — do your own due diligence to determine if the stock fits in with your investment objectives and risk tolerance. With that in mind, here’s a look at some of the big movers in the stock market so far in 2021.
Last updated: Jan. 25, 2021
The Stock Market Keeps Going Up
2020 was quite a year in the U.S. stock market. In March 2020, the S&P 500 index fell 30% in just 22 trading days, the fastest 30% drop ever. But then, the index immediately turned around and made new highs, marking the shortest bear market, at 33 days, in the index’s history. The market finished the year up a relatively astonishing 16.26%, nearly double long-term averages.
Investors could be forgiven for taking some profits at the beginning of the year, given the volatility of 2020 and the double-digit gains earned by the market. However, the market is continuing to trend higher. Even transitioning to a new president and the breach of the Capitol on Jan. 6 couldn’t hold back the stock market.
Read: What Experts Say 2021 Will Look Like for Your Wallet
Tesla Keeps Going Up
Tesla is one of the most controversial stocks on Wall Street, thanks in part to its maverick CEO Elon Musk. 2020 was definitely Tesla’s year, however, as the stock shot up an astonishing 700%. With the stock at such stratospheric levels, a significant pullback is likely in the cards at some point. However, as of Jan. 20, that point has not yet been reached. Tesla has continued its record-breaking run, tacking on another 20% in the first few weeks of January alone. The more people doubt the stock, the higher it seems to go.
Find Out: 10 Stocks Set To Soar in 2021
General Motors Is Reborn
General Motors stock has hardly gone anywhere for more than 10 years, but starting at the end of 2020 — and continuing into early 2021 — General Motors is absolutely skyrocketing. Why is this old-line, traditional automaker suddenly becoming a Wall Street darling in the era when…
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