While it may be hard to tell, I want to re-assure you that 2020 is indeed over. Also, as predicted by many, the election has come and gone.
One of the amazing (exhausting) things about last year was the dizzying pace of significant world events. And while 2021 began with some annoyingly familiar chaos, it does appear the start of this year is different.
We are already 30+ days in and, other than a bumpy inauguration, we aren’t really faced with any new big immediate changes. As if we needed anything new after the arrival of murder hornets. What we currently face is a lot of questions that will take time to answer. In many cases, significant time. Some of those questions include:
- What will the new, mostly divided U.S. government actually change and when will we start to see those changes?
- How long will it take to vaccinate most of our high-risk population, and when will things like travel start to open up again?
- How much of the new stay-at-home economy will become permanent, and how will that affect the economy as a whole?
- What will be the effect of all the government stimulus and when will we see those effects on the market?
I’m sure we could add many more questions to this list, but they are likely all things we can’t have the answers to today.
While 2020 was more akin to an action film, 2021 seems to be starting out more like a multi-episode drama. Whether you like the new characters of this show or not, we are going to have to wait to see how the new story actually develops.
For some of us, this could be really good news. Maybe we can decide to turn off the TV and go do something fun or productive. Like much in life, watching all the twists and turns won’t change the outcome. (Watching live sports is an obvious exception, as everyone knows watching a game with the right people, appropriate snacks and correct clothing definitely affects the outcome.)
This doesn’t mean that the market will take the next several months off. In fact, the waiting and uncertainty could bring us a moderate correction, which brings its own opportunities.
Investing is long-term process. While years like 2020 are volatile and action-packed, most years are just not that way. If you need some help or reassurance that your plan is built for the long-haul, let us help.