It has been an unprecedentedly good year for stock markets worldwide, and the continuing success of the stock index has been a key indicator of the continued investor growth in 2020. The Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite have all seen significant gains since the start of the year, and these gains have only accelerated in recent weeks.
The situation is no different for growth stocks, which have outpaced other types of investments in terms of gains this year. In fact, since the start of the year, the S&P 500 has risen more than 24%, while the Nasdaq Composite has surged more than 35% and the Dow Jones Industrial Average has seen a gain of more than 21%.
Growth stocks are typically stocks that are perceived to have higher growth potential than the market as a whole. Therefore, investors have been attracted to these stocks due to their potential for higher returns. Technology and e-commerce stocks, in particular, have been at the forefront of this growth, as these two sectors have seen a considerable amount of attention from investors.
Investors have also been drawn to other sectors of the market, particularly high-dividend stocks, which have also enjoyed strong growth since the start of the year. Utility stocks, for instance, have seen a gain of approximately 20% since the start of the year, while real estate investment trusts (REITs) have seen a gain of almost 17%.
As the stock market continues to show signs of strength, investors are continuing to focus on growth stocks, with the hope that continued performance in these stocks will lead to greater returns in the months ahead. While there is no guarantee that the strong performance of growth stocks will continue, the market appears to be signaling that the current trend could continue for some time to come. In the meantime, investors will be watching closely to see how this will impact their portfolios.