Looking Ahead

I’m happy to see 2020 in the rear-view mirror. How about you? Let’s call it like it is: 2020 was a disaster from a human suffering and death perspective. And on top of that, there was a contentious, divisive national election, an economic swoon that has not ended yet and civil un-rest over long-simmering racial bias. Yes, 2020 is behind us.

But what now?

In our business, there are always numerous guesses about what happens next – next year, next quarter, next month, next day, next hour. I don’t like this aspect of our business, but it’s a fact of life in the financial industry. Most years I avoid joining in the future casting business because it’s pointless. This year, I’m joining in. Therefore, here are my 2021 predications:

  • The sun will come up every day in the East and set in the West.
  • People will get married, babies will be born, and we will lose loved ones too soon.
  • Loads of people will start diets in January and abandon them by March.
  • There will be conflicts: between countries, between regulators and businesses, between businesses, between government and individuals, between neighbors, between races, between enemies, between friends.
  • People will retire to start the next phase of their lives and people will enter the workforce for the first time.
  • Artists will create.
  • Merchants will sell.
  • Daily, the stock market will go up, down and stay the same.
  • Now, here is what I hope happens in 2021:
  • The world will get ahead of the COVID-19 crisis through effective vacancies and stamp out this virus.
  • Creative problem solving will flourish without blame.
  • Family and friends will remain important.

The point I’m trying to make is 2020 was an un-usual year (but not un-precedented) and 2021 will likely be a “normal” year of highs and lows, news, noise, and surprises. Accordingly, we recommend you invest by following your asset allocation tied to your goals, time horizon and risk tolerance.

What about your predictions for 2021? Please share them with me at steve@finpath.com