We are certainly living in interesting times. For some, it may increase concerns about investing. One of the primary lessons from 2020 is that we are all resilient. Adjusting to change isn’t easy, but somehow we all adapt.
Evidence showsthat timing the market is a difficult game. Every year there is an excuse not to invest. However, despite perilous conditions in every year, the stock market continues to march forward over the long term. If you avoided investing because of these reasons, you would have missed out on significant opportunities for return.
A few key positives for 2021 include:
- Strong consumer spending from those areas of the economy doing well
- Vaccinations to curb the spread of disease
- Reopening of travel and entertainment venues to increase job opportunities and rebuild difficult areas of the economy
- Pent-up demand for travel and entertainment
- Personal wealth growth from an increase in housing prices and investments
The reasons in the table below not to invest through 2016 were found through a blog at Kennedy Financial Services. I think it is a great reminder that conditions are never perfect. Saving and diligently investing over time is the best way to increase your opportunity for financial growth, regardless of current headlines.
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