What are the best American stocks to invest in 2020?
Although the current economic environment does not encourage savers to invest on the stock exchange, this could be an excellent time to make their savings profit in the long run.
It must be said that in the first quarter of 2020 we have witnessed collapses in financial markets all over the world. A mass sell off of securities due to the pandemic and the consequent economic uncertainties generated by the coronavirus. To give you some examples: the Dow Jones index lost -23%, worst performance since 1987; while the S&P 500 index recorded a loss of -20%, results that it has not seen since 2008.
A situation that certainly does not encourage investors.
Nonetheless, buying stocks remains a great choice to bet on, particularly if you plan to keep them for a long time. Furthermore, not all sectors are suffering negatively from the lockdown, indeed, as we will see later, there are those who have earned it.
The best American stocks 2020: the economic picture
As we said earlier and as I explained to you in the article Best Italian actions , there are sectors that are recording significant gains from this pandemic.
For example, according to data reported by Bloomberg, in the S&P 500 index, 31 stocks recorded revenues in the first quarter of 2020 (ended March 31). While the rest are all at a loss.
To better understand what has been the shock caused by the pandemic and how the US stock market is reacting, we see the trend of the main indices in the last year.
This is the main index of the NYSE (the New York Stock Exchange), obtained by calculating the price of the 30 main securities traded on Wall Street. The Dow Jones includes: Apple, American Express, Boeing, Coca-Cola, IBM, Intel, McDonald’s, Walt Disney, Visa, Nike, Microsoft, and other very important brands.
Of course, with so few stocks we don’t have a complete picture of the stock market trend. However, the companies admitted to the calculation of this index are leaders in their sectors and therefore worthy representatives of their reference market.
Dow Jones chart
From the graph we note the collapse that the index has had since February 20, 2020 (the day on which it touched 29,219.98 basis points), and the lowest price of 18.591.93 basis points recorded on March 23.
In the following weeks, the volume of business returned to above 24,000, as recorded in the closing of 17 April.