Investing Newsletter - Jan 2021
Investing Newsletter (click image to open newsletter)
In the face of a global pandemic, stock and bond markets performed surprisingly well in 2020.
Last year investors experienced one of the swiftest drops and subsequent full recoveries in stock market history.
We took advantage of the correction and rebalanced portfolios in March when the market was low. We also took advantage of market lows by executing tax-saving tax swap trades.
Over the next 10 years, Vanguard expects stock and bond returns to be lower than historical norms.
GMO’s 7-year return forecast is significantly lower than Vanguard’s.
Both Vanguard and GMO expect equity markets outside of the U.S. to outperform.
The possibility of lower future returns should be taken into consideration in your future financial planning.
Staying diversified and disciplined and maintaining a long-term investment perspective is the best course of action going forward, as always.