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{"id":2213,"date":"2020-07-06T18:58:18","date_gmt":"2020-07-06T18:58:18","guid":{"rendered":"http:\/\/www.pauzalabirou.ro\/?p=2213"},"modified":"2020-07-06T18:59:34","modified_gmt":"2020-07-06T18:59:34","slug":"how-much-money-you-would-have-now-if-you-invested-1000-in-these-companies-on-1-january","status":"publish","type":"post","link":"https:\/\/www.pauzalabirou.ro\/2020\/07\/06\/how-much-money-you-would-have-now-if-you-invested-1000-in-these-companies-on-1-january\/","title":{"rendered":"How much money you would have now if you invested $1,000 in these companies on 1 January"},"content":{"rendered":"

Markets across the world plummeted in February and March as the COVID-19 pandemic caused panic among traders and investors.<\/p>\n

The S&P 500, for example, declined by over 30% between February and March this year \u2013 the fastest bear market from an all-time high in history.\u00a0The bounce-back was equally fast, with the Nasdaq composite and S&P 500 erasing their year-to-date losses in May and June respectively.\u00a0This may seem counter-intuitive as the number of COVID-19 cases around the world continues to rise, and businesses and economies continue to suffer.<\/p>\n

Billionaire investor Bill Ackman explained that the pandemic affects companies differently and large-cap companies with strong balance sheets are beneficiaries.<\/p>\n

This rapid market recovery is driven by big tech companies like Amazon, Apple, Microsoft, Facebook, and Google, which are now hitting all-time highs.<\/p>\n

Ackman explained these tech giants make up a large percentage of market-cap-weighted indexes like the S&P 500 and Dow Jones, which explains the market recovery while economies continue to struggle.<\/p>\n

<\/a><\/p>\n

\u201cWhat the market does not reflect are small businesses, private companies and leveraged businesses that don\u2019t have access to capital and the same dominance as the public market,\u201d said Ackman.<\/p>\n

He explained the markets are a snapshot of a part of the economy instead of the whole economy, which continues to struggle.<\/p>\n

\u201cIf you had an index of smaller businesses, the market would be down 50%, 60%, 70%, or even 80%,\u201d Ackman said.<\/p>\n

Volatile markets<\/h3>\n

Over the past few months, market volatility has reached record highs, which Ackman said is because the market is a discounting mechanism.<\/p>\n

\u201cPeople\u2019s estimates of the future have been very volatile, like how long the crisis is going to go on for or when will we go back to a normal life,\u201d he said. \u201cThese things affect the input of the model that analysts are using to value securities\u201d.<\/p>\n

Another factor behind the volatility is that the market in the short term is a sentiment index \u2013 a way for people to express their emotions.<\/p>\n

\u201cThere has been a lot of emotions in the short term. When that happens there is a corresponding degree of volatility.\u201d<\/p>\n

Ackman said he does not think the market is dramatically wrong.<\/p>\n

Biggest international winners<\/h3>\n

The share prices of all the big international tech companies showed growth since the beginning of the year.<\/p>\n

The biggest benefactors of the pandemic were Zoom, Tesla, Amazon, and Netflix. Apart from Tesla, the pandemic played perfectly into their product offerings.<\/p>\n

The chart below shows how much money you would have now (the end of trading on 30 June) if you invested $1,000 in these companies on 2 January 2020.<\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Markets across the world plummeted in February and March as<\/p>\n","protected":false},"author":2,"featured_media":2214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[2041,254],"tags":[2042,937,2043,2044,2045],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.pauzalabirou.ro\/wp-content\/uploads\/2020\/07\/Tech-Companies-Logos.jpg","jetpack_shortlink":"https:\/\/wp.me\/pboNaS-zH","_links":{"self":[{"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/posts\/2213"}],"collection":[{"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/comments?post=2213"}],"version-history":[{"count":2,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/posts\/2213\/revisions"}],"predecessor-version":[{"id":2217,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/posts\/2213\/revisions\/2217"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/media\/2214"}],"wp:attachment":[{"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/media?parent=2213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/categories?post=2213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pauzalabirou.ro\/wp-json\/wp\/v2\/tags?post=2213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}