5 Best Performing Stocks And What To Buy Now

2020 was a weird year for the world economy. Even more surprising has been the impact of the economic fallout on the stock market.

It was a year when expensive stocks grew even more costly and investors could see the true benefit of diversified income producing assets.

Why Did The Stock Market Perform Well

The Federal Reserve, the Treasury and Congress worked together to provide stimulus packages to various affected communities. While we can debate the speed and effectiveness of these measures, the data clearly showed that the vast majority of Americans could use the funds to augment their net worth.

Best Performing Stocks in Nasdaq for 2020

The Nasdaq list of best performing stocks encapsulates how everything changed in our lives during 2020. Zoom became part of our everyday vocabulary as everyone started working from home, and all events were conducted virtually. Closure of gyms resulted in people working out at home using Peloton.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

Best Performing Stocks in S&P 500 for 2020 When we look at the best performing stocks in the S&P 500, we have Tesla at the top of the list again. The inclusion of Tesla into the S&P 500 was not without controversy.

Best Performing Stocks Based On Lifetime Wealth Creation According to the SSRN paper “Do Stocks Outperform Treasury Bills?” authored by Bessembinder, ExxonMobil (Ticker: XOM) created a staggering amount of $1 trillion in wealth between 1926 and 2016. It has been one of the best lifetime wealth creation machines.

Best Stocks To Buy Now It might be tempting to look at the list of best performing stocks to extrapolate that their performance would continue. However, past performance is not indicative of future performance. Picking individual stocks is hard, even if they have been the most successful stocks in the past.

Analyzing the list of best performing stocks to determine if they would continue their outperformance is hard. Although momentum and trends persist for a while, using those factors to base your investment doesn't always work out.

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