For investors, the new year is a time to reflect on the lessons of the past twelve months. There is much to consider after the COVID-19 pandemic led to an economic collapse, bear market crash, historic government stimulus, plummeting interest rates and more - not to mention the impact on everyday life.
Other events and headlines that added to investor concerns include a heated presidential election, cybersecurity breaches and government action against large tech companies, just to name a few. These events are a reminder that, despite one's best efforts, it is impossible to predict and plan for every scenario.
In this market commentary, we discuss the pace of economic recovery, how balanced portfolios compared to other asset classes , and why now may be the time to exercise caution with regards to high-flying sectors.