First Some Announcements:
Our new online platform is up and running. If you would like access, please reply to this email and we will get started. This new platform will be especially helpful for those who have annuities as the balance will now be shown.
Recent Blog Posts include: 3 Budgeting Resolutions for the New Year, I think everyone should “Retire Early”, 6 Financial Tips for Funding Your Retirement Bucket List, and more. To read visit: AscendInvestment.com/GarrettsGarage
After the steepest market drop in history, now what?
2020 reminded us and taught us of three major lessons:
- It is time in the market not market timing that increases the odds of success.
- Nobody knows the future, plan accordingly.
- There is always good.
With a year that was a recipe for a market disaster: a pandemic, social unrest, a presidential election, a host of natural disasters, and many more yet there was a recovery.
Though there are those who left money in cash for fear of the market and now are hesitant to invest at all-time highs, there is some good news. The market does better after reaching all time highs. Calling the bottom of the market is nearly impossible, and once markets start to recover there is optimism a plenty. Over the last 30 plus years if you invested at all time highs verses any other random day you would have outperformed.1
The lesson is not to invest at the top but to always be invested. It is time in the market not market timing that increases the odds of success.
Another exercise we do is to look back at past predictions to see how they held up. And simply put – everyone was wrong. The hours that were put into research reports at the end of 2019 did not make it more than a few weeks into 2020 before they were all thrown out. But by not panicking and staying the course, along with looking for new opportunities, you were able to come out ahead. In fact, we were impressed with the number of conversations we had while the market was in turmoil that were basically “How can we maximize on this opportunity” This allowed us to engage in tax opportunities and continued investments. Nobody knows the future, so plan accordingly.
Lastly, this last year we heard many wonderful and encouraging stories, from taking care of family members to having neighbors and family taking care of you. Times of stress can reveal the good that is out there. We have wonderful clients and are grateful every day to be part of your lives.
Thank you for trusting us, we do not take it lightly. We will keep the lessons of 2020 in mind as we move into 2021. And as always, please reach out with any questions.
Garrett G. Smith
Ascend Investment Partners
Paul M. Norman, CFP®
Senior Financial Advisor
Ascend Investment Partners
214 South Main Street
Logan, UT 84321
175 Historic 25th Street
Ogden, UT 84401
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