Understand the markets: 2021


    “The S&P usually rallies in November and December. Since 1980, the S&P 500 was up nearly three-quarters (73 percent) of the time in the last two months of the year, up an average of +3.3 percent overall. When the S&P is higher in November and December, it is up an average of 5.6 percent, compared to a loss of 3.1 percent in years with a negative return for those two months. «

    After a positive October, the stocks surely prevailed again with a positive performance from November to December.

    Share of the year: Tesla

    As I wrote in this column, no stock garnered more attention than Tesla in 2021. And probably no executive has made more headlines than Elon Musk, CEO of electric vehicle maker Tesla.

    Musk was named by time as person of the year.

    Tesla and Musk also moved Bitcoin when the company started accepting the cryptocurrency for payments. He then changed his mind for environmental reasons. He’s reversed course. You can buy a Tesla with green mining bitcoin.

    In 2021, Tesla was well on the way to increasing deliveries by 80% year over year and has now manufactured about two-thirds of all electric cars in the US. In addition, the year 2021 started with its first full year of profit. At the current sales rate, Tesla is well on its way to delivering more than 1 million new vehicles per year. They will also open mega manufacturing facilities in the US, Europe and Asia. It’s an expensive stock, but the growth and outlook are just spectacular.

    The tailwind for Tesla and the electric vehicle industry is more like a storm wind. The global shift to green in an attempt to meet net zero emissions targets for 2030 and 2050 could be the greatest economic force in the next or two decades.

    In 2021, I started a position in Amplify BATT ETF, which Tesla holds and invests in the EV and battery ecosystem. I am adding to the position. I’m also building my HLIT position, a Horizons ETF that has exposure to lithium, which is needed for battery production.

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