The data is in.
2021 is in the books.
And it was a good one for most risk assets. Although the majority of stocks had their struggles at some point throughout the year, sector rotation continued to drive index prices higher. And it wasn’t just stocks, risk assets in general had one for the record books.
The Average stock in the S&P500 was up 27.6% in 2021.
The Median S&P500 stock returned 25.2% for the year.
Only 14.4% of S&P500 stocks finished negative for the year.
When you take into account all the stocks in the U.S. that are above $1 Billion in market cap, the Average Return for 2021 was +26% and the Median Return was +18.39%
Meanwhile, Crude Oil was up 55.5% along with other Energy Commodities like Gasoline RBOB, Brent Crude and Natural Gas each up between 48-58% for the year.
It was the Precious Metals that really took the heat this year with Palladium down 22.4%, Silver down 11.5%, Platinum down 10.5% and Gold as the precious metals “leader” down just 3.4%.
Imagine getting the inflation call correct, but buying gold as your way of profiting from it?
“Inflation hedge”. Cute story.
Let this be a good lesson to not let some foolish narrative guide your decision making in the market. Only price pays. Leave the story telling to mother goose.
You’re an investor. Grow up.
If it’s not working then move on.
Turn the noise machines off and pull up a chart.
Take a look at Crypto. Notice how their charts look like gold charts, but upside down.
You saw Bitcoin put up a 60% year and Ethereum blew everything out of the water up almost 400% in 2021. When you go down the cap scale the numbers just get silly, so I’ll let you go down that rabbit hole.
Check out the rest of the Futures contracts for the year.
How about Oats leading the way!
I was in bed by 8PM on New Year’s Eve and up by 6AM on New Year’s Day.
A younger version of myself might have just been getting home around that 6AM time. Boy have things changed.
And you know what? I felt great this morning. Got a workout in and ripped through about 2000 charts.
You know what I noticed?
I caught myself typing the words, “New All-time Highs” an awful lot.
Like a lot. More than I can remember in a long time.
We’ll be discussing all of our findings on Monday night’s Live Conference Call.
We get going Monday January 3rd @ 6PM ET.
Premium Members can register here for that.
We have a lot to cover!
Try to be there live so you can ask questions. But keep in mind that if you can’t make it, you can access the archive of the video and download all the slides here.
See you then!