Why 2021 was a year of unprecedented market exuberance and financial upheaval

From the rise of meme stocks to the mainstreaming of cryptocurrency, 2021 was a volatile and transformative year for global markets. This video reviews the major financial events, supply chain crises, and geopolitical shifts that defined the year despite widespread investor optimism.

The year began with dramatic short squeezes involving GameStop and AMC, setting the tone for a period marked by high investor enthusiasm. As global economies recovered from the pandemic, they faced significant supply chain bottlenecks and labor shortages, which contributed to rising wages and the phenomenon known as the great resignation. Despite the collapse of the Chinese property giant Evergrande and soaring commodity prices, stock markets and house prices continued to climb throughout the year.

Beyond domestic markets, 2021 saw 1,058 companies go public through IPOs. The financial landscape was further complicated by the formalization of Brexit, ongoing US-China tensions, and emerging concerns regarding Russia's intentions toward Ukraine. Simultaneously, cryptocurrency saw a surge in mainstream adoption, accompanied by a proliferation of influencer-led coin and NFT projects.

Source: 2021 The Year in Finance