Market update: The Return of the Roaring Twenties?

After the First World War and a global pandemic, the 1920s saw a decade of economic, cultural and artistic dynamism which transformed the world. Could the 2020s see a repeat of the Roaring Twenties? Imagine the world is coming out of a major pandemic, after years of economic and political turmoil. The United States has just had a presidential election where the winner ran on a message of “returning to normalcy”, promising a new era of more stable politics and economic growth. The year… is 1920. 

In the US election of 1920, Warren G. Harding ran for President with the campaign slogan: “Return to normalcy”. After the chaos of the First World War, followed by the human and economic tragedy of the 1918-1919 Spanish Influenza pandemic, a political message of stability and “normalcy” resonated with voters. The exhausted population of 1920 would be forgiven for having viewed their future as bleak. But what happened in the subsequent decade was remarkable in how different it was from the preceding decade of conflict and pandemic. The 1920s saw unprecedented technological development, economic growth in the developed world and a creative explosion that still influences modern culture today. Perhaps the 2020s, following a decade of political turmoil and a serious pandemic, could be about to surprise everyone. 

Mark Twain is credited with having said: “History may not repeat itself. But it rhymes.” Future historians may come to view the 1920s and the 2020s as decades when history rhymed. In the year 1920 and in the year 2020, investors found themselves in the midst of a pandemic-ravaged economy where activity (both economic and cultural) had been suppressed, where consumers had ‘pent up demand’ from higher savings due to forgone spending during a pandemic, and where technological developments were set to transform the world around them over the coming decade. When we look at the investment outlook, we cannot help but be optimistic about the likelihood that the 2020s will be a decade of growth and transformation. 

The lockdown of much of the world in response to the COVID-19 pandemic has forced lasting behavioural changes. Foremost among these has been a migration of millions of new users to digital platforms. This has driven a major acceleration in the e-commerce trend, with years of future adoption of digital platforms happening in just a few months in 2020. What is often under-appreciated about this incredible change is that the shift of our personal and economic lives onto digital platforms is irrevocable. This transformational change has generated the growth of the digital economy, both in terms of its population and economic activity, does not stop when the COVID-19 pandemic is over.  

The digital future for the developed world is happening now in China, the world’s largest e-commerce market at over $2 trillion in value. The Chinese ecommerce market is set to more than double in size by 2023. The question is not whether the rest of the world will look like China, but how quickly it will catch up. 

On the topic of technological advancement, this graphic shows how much the big Western Tech firms make every minute. Imagine a company making nearly one million dollars of revenue every single minute. Of course, that’s not to say it all converts to profit.  


An interesting point around some of these firms is that they are all referred to as Technology stocks. Quite simply they are not, they are firms in various sectors that use technology as their platform for distribution. Facebook and Alphabet are advertising firms, TESLA is primarily a developer of batteries and electric cars, Amazon is primarily a retailer. We constantly hear about a Tech Bubble forming and there may well be one in the true technology space, but some experts expect that these particular firms are here to stay. They will continue to thrive in their relevant sectors and the clever people they employ will lead them on to bigger and better things regardless of any short-term market volatility. 

We’re here to talk through any of the points covered in this article. If you would like to speak to a member of our team here at gpfm, please don’t hesitate to get in touch over email at or call 01992500261.  

This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions. Investments can go down as well as up and you may get back less than you invested.  

About gpfm  

gpfm are an independent financial planning company dedicated to the provision of personal, professional, and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.