MINT HILL, NC – Now that we’re several weeks into the new year, it’s a good time to look back at 2020. What can investors learn from a most unusual year?
First, stay focused on your goals. Although the financial markets plunged when the pandemic hit, they rallied strongly the rest of the year, rewarding investors who stuck with their long-term strategies.
Next, always look for investment possibilities. Even during a down market, many stocks have strong fundamentals – and they may be attractively priced. Smart investors take advantage of these opportunities.
Third, try to own different types of investments. Bond prices often move in different directions from stocks. So, when stocks are down, owning bonds can help stabilize your portfolio.
Finally, be aware that the financial markets always look ahead. Even while the pandemic was at its worst, stocks rallied – because the markets were anticipating the arrival of a stronger economy.
All of us are probably glad to have 2020 behind us. Yet, the year taught us some investment lessons that we can put to work in 2021 – and beyond.
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This article was written by Edward Jones for use by your local Edward Jones Financial Advisor