The Wall Street Journal compiled 15 personal finance lessons we can learn from 2020 and the COVID-19 pandemic.
Here’s one about the importance of staying invested, even when the market gets rocky. That is advice worth reviewing now as many market indexes are reaching new highs. While that needn’t mean a pullback is imminent (if anything, the pandemic taught us that trying to time market movements is a loser’s game), it should prompt us to prepare both financially and emotionally for the inevitable pullback and make sure we’re ready.
“Last year’s tumultuous market reinforced the importance of staying invested. It looked like financial markets were doomed near the end of the first quarter. We saw days where markets went down over 10%. Many investors panicked and went cash fearing the worst. Since then, the markets have rallied and anyone who tried to time the market and go more conservative is probably feeling a bit of regret.”
David Blanchett, head of retirement research at Morningstar Investment Management, as quoted in The Wall Street Journal, “15 Personal-Finance Lessons We Can All Learn From the Year of Covid-19,” January 24, 2021