Investors wouldn't have been blamed for wondering, if even only for a moment, whether they had too eagerly kissed 2020 goodbye.
The 2021 trading year got off to an inauspicious start, with the major indices lurching lower Monday amid peaking political uncertainty and continued COVID-related pressures.
"Investors are feeling antsy this week," says Lindsey Bell, chief investment strategist for Ally Invest. "COVID cases continue to spike, with a new variant of the virus spreading across the globe. Tomorrow's runoff races in Georgia could decide the makeup of the Senate, and the market generally has performed better in a split Congress (the situation we have now)."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
She points out that the CBOE Volatility Index (VIX) spiked above 28 today – "a level not seen since the presidential election in November."
By lunchtime, the Dow Jones Industrial Average had slumped by as much as 724 points (-2.4%) to below the 30,000 mark. While it climbed from its lows, the industrial average still suffered a 382-point (1.3%) tumble to 30,223. The Dow was weighed down most by Boeing (BA, -5.3%), the average's worst stock in 2020, and Coca-Cola (KO, -3.8%).
Other action in the stock market today:
- The S&P 500 closed 1.5% lower to 3,700.
- The Nasdaq Composite suffered a similar decline to 12,698.
- The small-cap Russell 2000 also slipped 1.5% to finish Monday at 1,945.
- U.S. crude oil futures slid by 1.9% to $47.62 per barrel.
- Gold futures jumped 2.7% to $1,946.60 per ounce.
- Tesla (TSLA) bucked the market trend, gaining 3.4% after reporting record Q4 vehicle deliveries and hitting nearly half a million deliveries across 2020. The company momentarily eclipsed $700 billion in market value Monday.
- Bitcoin, which closed out 2020 around $29,000, hit $34,810 over the weekend before pulling back to $31,600 during Monday's trade.
Don't Let Your Imagination Run Wild Yet
Fortunately, Monday was just one trading day out of 252 this year. And, like in baseball, no one should sweat an 0-1 start. In fact, Bell points out that it's effectively a coin flip as to whether the stock market will finish the year up or down following a first-day decline.
Bell also suggests that "selloffs like these could be a good opportunity to buy some stocks on your wish list or rebalance the investments you already have."
Your head might naturally go to value stocks when thinking about dip-buying – especially when many analysts are preaching the gospel of value stocks. But ignore the better prices on growth stocks at your own peril. Many bullish value calls note that growth won't be stymied for too long, so you could do well to identify growth prospects worth snapping up amid turbulence before they recover later this year.
Consider the following list of 11 tenacious growth stocks – companies whose revenues are stretching like weeds and who are getting much better at turning those sales into profits. They might take you on a bumpy ride early in 2021, but we like their chances to drive outsize portfolio gains for you down the road.
Kyle Woodley was long BA and Bitcoin as of this writing.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You WantTrue retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for RetireesThe One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages – until it wasn't.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
Dow Bleeds Red Due to Big Blue: Stock Market TodaySix of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
