New Delhi, Jan 4 The S&P 500 jumped nearly 27 per cent last year, underpinned by super-supportive monetary policy from the Federal Reserve and hopes for the forthcoming Federal spending from the Joe Biden administration.
It was the third straight double-digit showing for the benchmark index, Axios reported.
As of December 31, 2021, S&P was up more than 90 per cent over the last three years, its best three-year stretch since 1999, the report said.
Even casual market histor might find the comparison with 1999 concerning, as it was almost the exact moment when the dot-com era tilted from boom to bust, the report said.
The actual high-water mark was March 24, 2000, after which the market suffered a slow-moving crash that sank stocks roughly 50 per cent over the next couple of years.
Few analysts on Wall Street foresee a similar cataclysm in the offing. Although few Wall Street analysts who predict crashes remain employed, the report said.
Analysts think that S&P 500 will rise about 10 per cent in 2022, according to FactSet data. With little clear direction at the moment, investors are crowding into some of the same mega-cap tech stocks Apple, Alphabet, Microsoft, and most recently, Tesla that in recent decades have proved immune to pandemics and economic cycles alike.
Those four companies alone contributed more than 25 per cent of the total return S&P 500 investors enjoyed in 2021, according to data from S&P Dow Jones Indices, Axios reported.
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