2020 was exhausting but thankfully it is in the rearview mirror where it will stay forever. If you feel the need to relive every major event that happened, here is an exhaustive list.
For this post I wanted to search high and low for reasons for optimism so that we can escape a “cancel” culture obsessed with sound bites, devoid of facts and simply missing kindness towards our friends, neighbors, colleagues and even Facebook friends.
For 2021 I want to share a list of reasons for optimism in 2021 and beyond. Enjoy:
GOOD THINGS DID HAPPEN IN 2020
There were a lot of great things that happened in the world in 2020. Here’s a brief list from USA Today. Some of my favorites include:
SCIENTIFIC ADVANCEMENTS ARE ACCELERATING RAPIDLY
Medical Knowledge is doubling faster than any time in history:
OUR ECONOMY PROVED TO BE RESILIENT
In the 1930’s, during the great depression, the Federal Reserve was still learning. In 2008 we discovered that they can do more than increase or decrease interest rates and they expanded their toolkit to prevent a second depression. In 2020, we learned that the Fed had additional bullets in its arsenal.
Thanks to unprecedented government intervention and despite our first recession in 12 years, the stock market ended positive for the year and survived many incredible events:
Negative crude oil prices after a price war between Russia and Saudi Arabia
Stock losses between 35-40% for the major stock indices.
March was the most volatile stock market in history.
But then, April had the best return for the stock market in history.
Fastest bear market ever (loss of 20% or more).
Fastest recovery from a bear market ever.
Government shutdowns resulting in shutdowns of travel, in-restaurant dining, and much more.
With the unprecedented intervention, many people are concerned about the $20 trillion dollar debt that is piling up. Should we be concerned? Yes, absolutely….but, maybe not as concerned as you may think. Read this article to see how the interest on the debt is actually lower than previous moments in history.
As computer-based trading algorithms and smartphone app trading becoming more prevalent, market volatility has only increased and having a financial plan and investment strategy has become that much more important.
THE WORK FROM HOME REVOLUTION COULD MEAN MORE TIME FOR FAMILY AND
HEALTH
In the early months of the pandemic as social isolation stepped in and gyms were closed, many of us gained a few pounds while snacking and watching too much Netflix/Hulu/Amazon. In retrospect, the isolation of the pandemic had some positives.
As we work from home more, we spend less time on the road travelling to and from work. With this additional free time we are fortunate to be able to spend more quality time with our immediate family and pets.
Also, many of us have developed a newfound love of cooking and hopefully managed to reduce our alcohol consumption. I was inspired to read that more wine and cheese may help reduce cognitive decline!
THE VALUE OF WORKING WITH A FINANCIAL PLANNER
Financial Planning is not just about managing investment portfolios. More importantly it
is about having someone you trust to guide you when the unexpected occurs and to
make sure your family has a trusted resource to rely on.
At Abel Financial Management, we are local, family oriented and truly independent financial planners with a mission to help you make smart decisions with your money. If you or someone you know are faced with decisions like these, we invite you to come have a conversation with us.