A Rollercoaster Year
Global stock markets dealt with persistently high inflation, global supply chain crisis, and one of the most frenzied speculative booms in decades. The FTSE 100 bounced back despite COVID-19 to finish 14.3% up in 2021. Financial markets climbed a wall of worry as investors drove up asset prices while deal-making soared and the gamification of investing hit new heights. Here are some of the biggest moments from a rollercoaster year.
The Rise of Meme Stocks
Starting with the rise of meme stocks on Wall Street and the coordinated effort of the retail traders to attempt one of the biggest short squeezes in market history. Organised through Reddit’s Wall Street Bets group, savvy online traders used call options and memes to fuel their orchestrated buying and tap into public distaste for speculative investors. These rallies ended in tears for some retail traders, who were left holding the bag as the meme stocks dropped back.
Big Tech Growth Dominates
Smaller technology stocks struggled as their pandemic sales growth slowed while the US Federal Reserve moved towards raising interest rates next year, dampening their appeal as growth stocks. Shares in Chinese technology companies plunged after a government crackdown. However, big tech grew ever more powerful, accounting for more than a third of the S&P 500’s returns this year.
Read More Here https://www.theguardian.com/business/2021/dec/31/stock-markets-2021-big-tech-crypto-takeovers
