When the Coronavirus pandemic broke out in the U.S. back in March, its main rates collapsed, including the Nasdaq technology. Only four months later, the Nasdaq reached its historical peak.
The months of the Pandemic have changed the consumption habits of most of the consumers in the world, strengthening the technology sector. The retail giant Amazon, this week scored its historical record over 3,000 dollars.
The online communication platform Zoom, which almost nobody knew about before March, in just a few months its shares are worth US$ 275, with a market capitalization of just over US$ 77,824 billion.
What to invest in in times of pandemic?
Nasdaq defeats the Coronavirus
On March 23, when the Coronavirus pandemic had fully entered the United States, the Nasdaq index was at its annual low of 6,860 points. Less than 4 months later, the index is at an all-time high of 10,617 points.
So far this year, the Nasdaq index has performed just over 18%. This clearly shows that the technology sector is beating the Coronavirus.
Nasdaq 2020 graph. Source: Yahoo Finance
The Dow Jones has a negative return of 8.6% so far in 2020, while the S&P 500 index is down 1.4%.
Technology also benefits crypto-currencies
The growth of Blockchain technology, especially Bitcoin, has led to a strong rise in cryptomonies in this time of pandemic.
The Crypto 10 index, which weighs the 10 most important cryptomonies in the ecosystem, has had a very significant rise since mid-March, in line with the rise of the Nasdaq. Is this a coincidence?
At the time of writing, Crypto 10 is quoted at 2,791 points, up from 1,700 in mid-March.
What is clear is that the technology sector has great potential for the future, although driven by the pandemic in the short term, the long-term fundamentals are more than auspicious.
Finally, reflect for a moment…
How many online purchases have you made in the quarantine?
How much more time have you spent on the Internet?
Have you subscribed to any new digital services in the last few months?
The technology sector is just beginning its growth phase, and crypto-currencies are part of it.
I’ll say goodbye until tomorrow with this line from Peter Lynch:
„Owning stock is like having children. Don’t invest in more than you can control.“