The Small Business Experience

The Great Stock Market Rotation


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In this episode, Dan & Ian discuss some new market news. This is a new phenomenon is in response to the COVID-19 pandemic. The shift in the market relates to the differences between growth and value stocks. When the world shut down in March, there was a lot of uncertainty as in-person activities ceased to exist. The capital markets reacted and The Great Stock Market Rotation explains why. Also, Dan & Ian comment on the future after COVID-19 and how they believe the business world will respond. 

Disclaimer: This video is for entertainment purposes only. This is not meant to be investing advice. Prior returns are not an indication of future results.

Outline for the Episode:
1. Brick & Mortar shut down, Digital Explosion
Restaurants, airlines, travel disappeared
Money went to tech and digitalization
⅔ stocks in the S&P 500 are still below Pre-COVID levels, but since tech stocks like Apple and Tesla are a larger weight of the index the S&P is reaching record highs
2. The difference between Growth Stocks and Value Stocks
Growth stock- potential to outpace the market, (Amazon, Facebook, Google)
Value stocks- companies trading for less than their intrinsic value (GM, Verizon) 
3. Changes brought by COVID-19 (HERE to stay) 
-Work from home
-Online shopping
-Zoom and Microsoft teams

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The Small Business ExperienceBy With Dan & Ian