Despite the pandemic, S&P 500 did well last year, 2020. In 2020, S&P 500 saw ~16% increase that is after over 30% drop during the beginning of COVID 19 pandemic in March 2020.
In the last 10 years, S&P 500 had positive returns for all the years except for 2011, 2015 and 2018.
WSJ has an article predicting the returns of the S&P 500 for the year 2022 will be lower as the gain we saw in S&500 the last two years are mainly due to “government spending and central-bank interventions, including the near-zero interest rates.”
Based on multiple financial service firm’s forecasts the average expected gain for S&P 500 is about 4.5%. Prediction is a funny game, can’t wait to see what actually happens in 2022.
[…] S&P 500, one of the three major stock market indices in US, did well in 2021. Here we look at how did the major 3 market indices, Dow Jones Industrial average, NASDAQ composite and S&P 500 perform in 2021. […]