WAXHAW, NC – Over the past year, we’ve learned a lot about the social, political, and physical forces that have affected everyone. But as an investor, what lessons can you learn from 2020?
Lesson one: The markets generally look ahead. Even though the pandemic has hit the economy hard, the financial markets, after plunging, recovered from the initial shock. That’s because they’re anticipating a stronger economic recovery in 2021.
Lesson two: Opportunities often exist for investors, especially in times of market stress. Smart investors look for opportunities and take advantage of them when appropriate.
Lesson three: Stay invested. Investors who jumped out of the market when it fell likely missed out on the rally that followed.
We probably won’t see anything like 2020 again. But some of the investment lessons we learned are applicable every year – so keep them in mind in 2021 and beyond.