2020 keeps surprising us. The announcement of the vaccine was followed by an incredible rally of the airline and the hospitality sector’s stocks, as well as stocks of all the other sectors that have been battered by the pandemic. On the contrary, there have been massive sell- offs of technological stocks or, even better, stocks that have been favored by the pandemic and had recorded big profits.

In a preliminary analysis, investors sold stocks that have had so far the biggest return and also have been favored by the pandemic, whereas they bought stocks with the worst return that have been in the eye of the pandemic.

Things were not different for technological Index Nasdaq.

The above investment strategy has provoked some really edgy situations, reminding us that during the investment process the right asset allocation is necessary. According to the following Bloomberg’s chart, Dow Jones U.S. Thematic Market Neutral Index fell almost 15% daily when, historically, this was unlikely to happen. It is obvious that when such extended fluctuations occur where even in investment models might not be a scenario, it is easy to understand why there is such big interest for a series of assets, creating in that way an image that can hardly be comprehended.

There were also strong capital inflows in the value stocks, which were favored by the scenario of return to normality. However, for now, this initial buy surge does not seem to continue.

The informal debate between Growth Stocks and Value Stocks is expected to continue in the coming weeks. Since there is too much money that has not taken advantage of the rise in markets, there is a possibility for more inflows into this category of stocks. Of course, regardless of the fluctuations of the coming weeks, Growth stocks will hardly lose the reins of the markets as long as interest rates remain extremely low and traditional value stocks face a high risk of reduction or even suspension of dividend payments.