Making sense of the markets: 2021

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“The S&P normally rallies in November and December. Since 1980, the S&P 500 has been increased practically three-quarters (73 pct) of the time within the final two months of the 12 months, and up a mean of +3.3 pct total. When the S&P is increased in November and December, it’s gained a mean of 5.6 pct in comparison with a lack of 3.1 pct throughout years with a unfavorable return for these two months.”

Shares actually got here by once more with constructive efficiency in November by to December, after a constructive October. 

Inventory of the 12 months: Tesla 

As I wrote on this column, no inventory garnered extra consideration than Tesla in 2021. And it’s doubtless that no government impressed extra headlines than Elon Musk, the CEO of electrical automobile (EV) producer Tesla. 

Musk was named by Time as its Particular person of the Yr. 

Tesla and Musk moved bitcoin too, when the corporate started to just accept the cryptocurrency for funds. He then modified his thoughts on account of environmental issues. He reversed course. You should buy a Tesla with green-mined bitcoin. 

In 2021, Tesla was on observe to extend deliveries by 80% over the earlier 12 months and it has now made roughly two-thirds of all the electrical vehicles within the U.S. It additionally kicked off 2021 with its first full 12 months of revenue. On the present price of gross sales, Tesla is on observe to ship greater than 1 million new autos per 12 months. They’re additionally set to open mega manufacturing amenities within the U.S., Europe and Asia. It’s an costly inventory, however the development and prospects are nothing in need of spectacular. 

The tailwinds for Tesla and the EV trade are extra like a gale drive wind. The worldwide shift to inexperienced within the try to achieve internet zero emissions targets for 2030 and 2050 could be the best financial drive for the subsequent decade or two. 

In 2021, I initiated a place within the Amplify BATT ETF that holds Tesla and invests within the EV and battery ecosystem. I proceed so as to add to the place. I’m additionally constructing my HLIT place, an ETF from Horizons that provides publicity to lithium that’s required for battery manufacturing. 

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