I think we can all agree that this year is one we will not forget anytime soon. From all-time market highs at the end of February, to the market being down over 30% just 23 days later and now, back to all time market highs as of this writing in late December. What a ride this year has been. COVID-19, Tiger King, Murder Hornets, and a Presidential Election; enough events occurred this year to get us through the next two. For some, this year has been one of the worst, for other’s one of the best. In recent times it is tough to find a comparable stock market that feels this dislocated. Technology stocks boomed with everyone working from home.

Entertainment, travel, and energy stocks were crushed by the lockdowns. Everyone in one way or another struggled and yet here we are looking at 2021 on the horizon with hope.And now, with a vaccine being distributed and a US economy that has continued to show resilience in the face of one of the most devastating events in recent memory, there is a sense of hope that in 2021 things can get back to “normal”- whatever that means for you as an individual. For some it is seeing family and friends, for others it’s travel, for the next person it is something else, but everyone has something that went missing in 2020 that they are hoping to regain in 2021.During this time, I think it is important to look back and reflect on what 2020 was. For everyone in different ways it was a year of highs and lows.

Lessons were learned and memories made, both good and bad. Like all things good and bad, those are the things that shape us, and it is my hope for all global citizens that when we look back on the year that was 2020, we will realize in some way that it made us better.So where does this leave us? As we look ahead to 2021, from an economic standpoint, things look strong. The stock market as a whole looks poised for growth. The Federal Reserve has consistently said that they are going to keep interest rates low, which historically has been good for the stock market because investors leave bonds and look to stocks in search of yield.

The one low point of the economy remains high unemployment, which we fully expect the Biden administration to address as one of their top priorities post inauguration. Congress has also just approved another $900 Billion stimulus that should serve as a boost for the economy. Health care workers have begun to receive the vaccine that we hope leads to the economy fully reopening. Never before has there been this much cash on the sidelines with over five trillion dollars in money market funds. Barring another unforeseen event, or a setback in current events, the prospect of a strong 2021 looks promising.At the end of the day, a strong financial plan and sound financial advice can weather any storm.

If you are a client of ours you know that we continuously preach the three-bucket strategy, and in a year like 2020, it helped put some worries and fears at ease from a financial perspective. We always say our clients are our family and we truly mean that. This year we went through ups and downs with our clients and felt the stress just as much as they did. And whether they know it or not, they were there for us, just as much as we were there for them. Although this holiday season is going to look different for most, I hope that everyone can continue to remain hopeful and optimistic about what 2021 can bring.

Cheers!

Posted in Retire While You Work

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