Summary of Best and Worst Performing Sectors in S&P 500 index 2020
Industries and governments are continuously seeking ways to optimize the movement of goods, data, and currencies across global supply chains.
In 2019, the world’s GDP rose by roughly 2.2 percent.And in 2020, we are seeing the impact of unprecedented global events tied to the COVID-19 pandemic and resulting economic upheaval.
From take a step back and look to GDP growth forecasts in published on 04 December, 2019 by S&P Global Economics ;
Timely action by central banks again saved the day, led by the U.S. Federal Reserve. Three consecutive rate cuts of 25 basis points (bps) from July to October reduced the benchmark federal funds rate to a range of 1.50–1.75%.
If we come back to Today ;
On the other hand, 2020 it was very different and difficult beginning year of the new decade.
In 2020, as examples of difference from past decade ;
We saw such as the quickest and deepest market decline in history, trillions of dollars global stimulus, the highest volatility(VIX) on record, negative oil prices and etc updates.
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The best and worst performing sectors generally fall into two categories: those that benefitted from COVID-19, and those that didn’t.
This massive divergence is evident in the numbers. Companies in winning sectors are often up double or triple digits — while their losing counterparts were often down double digits, sometimes even halving in value from how they started the year.
As you can see, shocks that affect global production are growing more frequent and more severe.
Global flows and networks offer more “surface area” for shocks to penetrate and damage to spread.
Disruptions are costly to societies, too:
after disasters claim lives and damage communities, production shutdowns can cause job losses and goods shortages.
Resilience measures could more than pay off for companies, workers, and broader societies over the long term.
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