PRMIA Intelligent Risk - July, 2021

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U.S. economic recovery mirrored in the stock market

by Aleksei Kirilov & Valeriy Kirilov stocks are a mirror Recently, investors, analysts and representatives of the regulators have been discussing two topics incessantly: the pace of recovery of the U.S. economy, as well as the magnitude and duration of a possible surge in inflation. We analyzed these phenomena based on the indicators of the U.S. stock market, since the market assesses not only the current position of companies and industries, but also to a large extent their prospects for further development. Information from the Finviz1 service was used as the source data. For the study, the time period was chosen from the beginning of January 2020 to the end of May 2021. In this way, we were able to compare the characteristics of the stock market before the onset of the COVID-19 pandemic with the current values.

changes in capitalization Table 1 shows data on the capitalization of U.S. stock market sectors, using their capitalization as of January 2, 2020 as 100%.

Figure 1 shows the change in capitalization of the stock market sectors as of 05/28/2021 in comparison with their capitalization as of 01/02/2020. 1 / https://finviz.com

Intelligent Risk - July 2021

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