Markets have seen some sell-off over the week on the back of Evergrande’s debt crisis in China (we will discuss this in detail in our quarterly report next week) and some selling seen last night in the technology and index heavyweights as the U.S. 10-year treasury yields rise close to 1.5% (high from June 2021). Markets seem to be factoring in the Fed’s policy outcome from the week as investors anticipate the Fed’s tapering to start soon which caused the yields to rise quickly. In spite of the recent sell-offs in the markets, we’ve seen some impressive rallies in the U.S. equities post the pandemic including some especially great year-to-date performances. We have had multiple stocks and themes covered on our platform this year, and as we come to the end of another stellar quarterly gain of 2021, we would like to look at the performance of some of these stocks and sectors over the past year.
We have broken down our coverage in terms of a few key stocks (from themes and individual stock coverage) which we have initiated so far in 2021 to understand the overall performance for the year. It would be interesting to see how these stocks have performed with a YTD 2021 perspective.
Scorecards of stocks covered since January 2021
While we provided our outlook for 2021 in January, we covered Big Tech stocks, retail stocks, vaccine stocks, and other technology stocks that would be positive for 2021. Here is the performance scorecard of the calls initiated on our platform since January 2021. All returns are calculated as of September 25, 2021.
Exhibit 1: FAANGM stocks performance YTD-2021
Source: Beyond The Pandemic: Outlook For U.S. Markets In 2021 | 30 December, 2020
Exhibit 2: Retail stock returns for YTD 2021
Source: Beyond The Pandemic: Outlook For U.S. Markets In 2021 | 30 December, 2020
Exhibit 3: YTD returns of technology stock covered outside of FAANGM
Source: Beyond The Pandemic: Outlook For U.S. Markets In 2021 | 30 December, 2020
Exhibit 4: Vaccine stocks and delivery stocks YTD returns
Source: Beyond The Pandemic: Outlook For U.S. Markets In 2021 | 30 December, 2020
Electric vehicle (EVs), and semiconductor stocks have performed well
In addition, we also had some interesting themes like the electric vehicles sector, semiconductor industry, cement/steel, industrial stocks (Sectors and stocks which were the direct beneficiaries of Biden’s economic plan) which we had initiated coverage on our platform in the first half of the year. Let us take a look at the performance of these stocks as shown in the charts below.
Exhibit 5: Auto stocks covered in the EV sector report
Source: Plugging into the Future: 2021, the year of the Electric Vehicle Revolution | 19 February, 2021
Exhibit 6: Semiconductor stock returns covered on our platform
Source: Semiconductors: Industry Overview | 2 July, 2021
Exhibit 7: Stock returns of beneficiaries from Biden’s economic plan
Source: Explained: President Biden’s $4 trillion Economic Plan | 7 May, 2021
Cyclicals stocks covered during the year
In addition, we also said that cyclical and banking stocks would perform well during the year and covered a few stocks in these sectors. The returns of these stocks have had a phenomenal YTD 2021, (charts below).
Exhibit 8: Cyclical stock returns YTD 2021
Source: The correlation between rising bond yields & equities: What should you do? | 9 April, 2021
Exhibit 9: Returns of Big banks covered on our platform
Source: Q2 Earnings season kicks off with the Big Banks leading the way | 20 July, 2021
We also covered some individual companies like DoorDash, Shopify, Airbnb and Spotify to name a few, and the returns of these stocks have been considerably good in the last month.
Exhibit 10: Individual companies’ returns covered over the month
Source: U.S. online food delivery market is 5 times bigger than the Indian market | 6 August 2021
Is 2021 a turnaround year for Airbnb? | 3 September, 2021
Conclusion
We’ve noticed that some of the returns of the stocks covered by us on the platform have far exceeded their YTD index returns. We will continue to identify such value stocks and themes for investors to benefit from our coverage. Do watch out for more of our reports to help power your own investment journey.
