August 2, 2021, | AtoZ Markets-We started a new month of the year, and in this article, we are going to review which are the best investment products during the following days. If you are an investor you can not miss this fabulous guide.
We started a new month of the year, and we are in the middle of the third quarter of 2021. Investors now face the risks that the Delta variant poses to the global economic recovery. However, many countries are still determined to maintain a strong vaccination in an attempt to avoid shutting down their economies.
Meanwhile, in the second quarter of the year, the total market capitalization of the United States stood at 204.5% of GDP, corresponding to the highest level in its history.
Below we can see in the chart the performance of the different asset classes that posted positive gains in the second quarter in the US. Including aggregate bonds, US Treasuries, and municipal bonds, which did not do so in the first quarter of 2021. However, these instruments were the relative laggards, up 1.8%,1.7%, and 1.4%, respectively.
Investors are once again betting on commodities, which are in the lead for the second quarter in a row, up 15.7%.
Meanwhile, in the first quarter, US stocks were up 11.3% as investors moved out of growth stocks and into value stocks, but in the second quarter, it was US growth, up 11.9%, that regained the limelight. Also, U.S. real estate had another strong quarter, adding 11.4% on top of its 7.9% gain in the first quarter.
Above all, crypto-assets made a big impact in the first quarter of the year, with Bitcoin being the big player. However, then everything changed pace in the second quarter.
Bitcoin’s market capitalization peaked at $1.21 billion on April 14. This amount corresponding to twice that of Berkshire Hathaway for example, but then halved by the end of June.
In addition, three other crypto assets, including Ethereum, Cardano, and Dogecoin, suffered similar fates. Cardano ended the second quarter down 40% from its all-time high. While the all-powerful Dogecoin has lost 61.4% from its May 8 record high.
Investor’s Guide to the S&P500
Although the current market impulses seem remarkably calm, it is important to always keep abreast of the latest trends and economic data. This will help us to successfully manage a good investment portfolio.
If we review a monthly chart of the S&P500 we can see that the rise of the index has been going on for several years. In the meantime, the value had a low last year when the covid19 pandemic started, and since then it has been rising continuously.
If we use a very famous trading tool called Fibonacci Extension, we can see that the next key level for the S&P500 is located at 4679.41.
Meanwhile, currently, the S&P500 VIX Futures have started with a slight rise of 0.5% to 20.02 points, while over the past seven days, the S&P500 VIX Futures have recorded a decline of 3.33%.
In addition, the S&P500 VIX Futures are 41.08% below their year high of 33.98 points, and 22.22% above their low for the year at16.38 points.
Best Options for Investing in Stocks
Currently, traders have multiple options to invest their money. At AtoZ Markets created multiple trading tools for our readers. So when you decide to trade stocks, be sure to check out this article we created for you.
Many analysts have advised buying stocks that have good prospects during the ongoing global economic recovery. Likewise, technology companies, some pharmaceutical companies, and energy stocks have very good projections at the moment.
Are you a stock trader? let us know your questions.