2020 has not exactly been ‘topping’. Following a K-shaped recovery from COVID-19, the divergence between the haves and have nots has been stark. This trend is reflected in the graph below, which illustrates how dramatic the impact of COVID-19 has been on swathes of the equity market. The positive effect on consumer staples and technology has been almost as shocking as the negative impact COVID has had on the energy and financials sectors. The dispersion in returns has been staggering, with the difference between the energy and technology sectors being 78% in the first three quarters of 2020.
