Well, it was nice while it lasted.
At least, that’s the sentiment many of Wall Street’s pandemic stars will have if this current trend of trading activity continues.
Right now it seems that anything you didn’t get to do in 2020 is a winning trade, while the companies that sell the goods and services we were all stuck using in 2020 are falling out of favor.
After investors piled into a host of pandemic stocks like Zoom (ZM) and Peloton (PTON), a new trend kicked off around early November right after news that Pfizer (PFE) and BioNTech (BNTX) had developed an effective COVID-19 vaccine, and it appeared things could return to normal sooner than later.
And as Yahoo Finance points out, Wednesday we saw a textbook example of how this trend is playing out when the tech-heavy Nasdaq slid 2.7% while Energy (XLE), Financials (XLF), and Industrials (XLI) were all higher. Shares of airlines and cruise line operators were also pushed higher on Wednesday while Zoom continued its post-earnings slide with the stock now off more than 20% this week and almost 40% from a mid-October record high.
While it makes sense that investors have turned bullish on these “re-opening” stocks, what’s a bit perplexing here is that despite so many major companies across the country selling off office space, seemingly setting the standard for a future of remote work, stocks like Zoom (ZM) are getting crushed.
Just further proof that the market has very little correlation to reality.