It’s hard to believe that a little more than a year ago, Covid-19 was officially declared a pandemic, we were facing a worldwide recession, and the stock market was smack-dab in the middle of a bear market.
That bear market started when the bears first wrestled the baton away from the bulls on Feb. 19, 2020. And while the bear market only lasted 33 days — the shortest in bear market history — it did not go down without a fight.
Specifically, Tuesday, March 16, 2020, was the day the bears threw their biggest punch.
On that Tuesday, the Dow plunged 12.9%, or 2,997.10 points, and the S&P 500 fell 8% at the market open. This triggered the “circuit breakers,” halting trading until 9:46 a.m. ET. This also marked the Dow’s biggest drop since “Black Monday” on October 19, 1987, which saw the index plummet 22.6%.
Some call that Tuesday “Black Monday II,” and for good reason!
Now here we are, a year later, and the stock market is on much stronger footing.
The bulls are back in charge, with the S&P 500 and Dow surging over 75% and 68%, respectively, from “Black Monday II” to March 16, 2021. In addition, the S&P 500 and Dow have hit a slew of new all-time highs, with the Dow surpassing 34,000 for the first time on Thursday.
The first Power Portfolio that InvestorPlace colleague and friend, Matt McCall, and I put together in mid-December jumped a stunning 38.5% — about five times the market’s average annual return — in just seven-and-a-half weeks. And we’re even more excited for what’s coming next.
But it’s not just the stock market that’s come roaring back. The U.S. is slowly returning to normal, too. About 198 million Covid-19 vaccine doses have been administered in the United States (about 836 million doses worldwide), and, as we discussed on Friday, we’re in the midst of a robust economic recovery as more states begin to lift restrictions and allow some businesses to operate at full capacity.
But because so many Americans have been at home, there’s also been an exciting accelerated technological change and worker productivity.
The changes we’ve seen following the Covid-19 pandemic remind me of a similar technological shift between 1665 and 1666, which was the last major outbreak of bubonic plague in Britain. Sir Isaac Newton fled to the countryside, and when he was in isolation, he discovered gravity (when the apple fell from the tree) and wrote the Theory of Relativity. This unleashed the Age of Enlightenment and new scientific discovery.
So, the big question is this: Will the isolation of many Americans in the past year also unleash a new Age of Enlightenment?
Matt and I certainly have been excited by all the technological changes in the past year and see more changes coming to boost productivity, which helps to squelch inflation and increase prosperity.
The field of artificial intelligence (AI), for instance, took a huge leap forward in the summer of 2020 when researchers at a Microsoft (NASDAQ:MSFT)-backed startup called OpenAI unveiled the world’s most far-reaching attempt yet to build the “holy grail” of AI, called artificial general intelligence (AGI). These are basically computer programs that can scour immense troves of data at lightning speed, and then “think” and act on their own, as flexibly and creatively as the human mind.
And they could be the key to an AI market that ARK Invest estimates will add $30 trillion in new wealth to the overall economy by 2037. By that time, AI as a technology will likely have surpassed the economic value of the internet! And set up a new generation of millionaires who saw what was coming and got in early.
It’s why Matt and I believe the time to get in position again has arrived.
We’ll explain more in our Road Map to Recovery event scheduled for Tuesday, April 20, at 7 p.m. ET. If you haven’t signed up yet, I encourage you to do so now. This is going to be an event you don’t want to miss!
There will be a lot to go over, so come prepared to take notes. We believe we will see both economic and stock market booms in the coming 12 months.
And, we do believe we’ve entered a New Age of Enlightenment, when revolutions in technologies like AI will change our lives forever and create unimaginable wealth for investors in the bargain.
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