That Was Easy: Fourth Quarter and Year-End 2020 Income Investing Recap

In a recent Nasdaq Markets publication, HANDLS Indexes Co-founder Matt Patterson provided a fourth quarter and year-end 2020 income investing recap. Matt also provided an outlook for 2021: well diversified portfolios with exposure to multiple asset classes continues to be the best protection against market dislocations.

Article highlights include:

• For calendar year 2020, the S&P 500 Index returned 18.2% while the tech-heavy Nasdaq-100 Index delivered a scorching 48.9% gain.
• Despite tapering off somewhat in the second half, fixed-income markets also delivered healthy returns for income investors, with the Bloomberg Barclays U.S. Aggregate Bond Index gaining 7.5% for the year.
• Two fourth quarter questions on investors minds: 1) election outcomes and; 2) a potential COVID-19 vaccine, which offered the possibility of a return to economic normalcy in 2021.
• The biggest investing story of the year: Tesla, which gained 64.5% return in the fourth quarter on news in November that S&P Dow Jones Indices had decided to add it to the S&P 500 Index after all.
• Fourth quarter performance by category: few reasons for income investors to complain.
• 2020 performance by category: core equity trounced every other income-oriented category on an absolute return basis, powering to a 37.4% return for the year.
• Long-term performance by category: the long-run picture continued to illustrate the power of diversification.
• Outlook for 2021: for income investors, well diversified portfolios with exposure to multiple asset classes continues to be the best protection against market dislocations.

To read the full article please click here: https://www.nasdaq.com/articles/that-was-easy%3A-fourth-quarter-and-year-end-2020-income-investing-recap-2021-02-16