2020 is Finally Over

Monthly Market Snapshot: December 2020


It’s over! It’s finally over! 2020 has officially come to an end and it is time to take stock of the annual performance of financial markets. The MSCI All Country World Index, a broad measure of stocks globally, rose by 14.3% in 2020. A solid performance during a year that global growth likely fell by 4.0% year-on-year. In the United States, the S&P 500 climbed 16.3% while the Dow Jones gained 7.2%. The tech-heavy NASDAQ surged 43.6% as social distancing increased demand for commutation and entertainment services. European shares lagged behind with just a 3.4% gain. Emerging markets rose 15.8%, but the gains were largely concentrated in Asia. Over the year, the 10-year U.S. Treasury yield slid from 1.92% to just 0.91%.

Vaccine developments bolstered confidence that there is a light at the end of the tunnel. Barring an unexpected setback, a broad distribution of vaccines in 2021 should help the global economy to more fully recover. Additional fiscal policy from developed markets governments still seems likely.

Citi Private Bank’s Global Investment Committee maintains an overweight on global equities and an underweight on global fixed income.