Investment Market
Commentary
January 2021, 4th Quarter Investment Market Review
Using the S&P 500 stock index as the gauge, 2020’s market performance was nothing short of spectacular considering the backdrop of COVID-19. From the market low on March 23 through December 31, the S&P 500 stock index returned about 68%. For the entire calendar year 2020, the S&P 500 stock index returned 18.4%, well above the average annual historical return of about 10%. These results reinforce our strong belief that panic selling never pays off. The true key to successful investing is sticking with a sound strategy and financial plan over the long-term, through good times and bad. Those who succumb to panic invariably do more harm than good.
As we often remind our clients, it is counterproductive to concern oneself with year-to-year market gyrations. We recommend a long-term perspective for all investors (3-5 years minimum). Those who constantly attempt to shift out of the stock market when the market is experiencing “despair” and into the stock market when it is experiencing “euphoria” often miss out on the benefits of long-term investing.
Investing Education
Resources for Investing Education
We are pleased to offer the following articles for your own edification.
If you have any questions, please contact us. We happily speak to local groups such as small companies and investment clubs.
Learn About the "SECURE Act" - A Major Overhaul to Retirement Plans
The Value of Premium Wealth Management
Battle Strategy for Your Financial Future
Financial Planning for Newlyweds
Guide to Long-Term Care Insurance
Guide to Your Parents Retirement
Pairing Financial Goals with Socially Responsible Investing
Investment Disclosure: None of the information contained on this web site constitutes a recommendation to buy or sell stocks or other investment products. Material on this web site is presented for informational and/or educational purposes only. Investing involves risk, and is not suitable for all people. Investment risk includes, but is not limited to, the risk of loss of principal. You should seek competent guidance before beginning an investment strategy. Information herein of a factual nature is believed to be accurate, but may contain errors outside of our control.