2020 Is Behind Us - What Comes Next?

A year like no other...

It seems wholly inadequate to describe 2020 as “unprecedented.”  From pandemic to politics, the impact of a year like no other continues to unfold.  Last March, when markets dove into a bear territory almost overnight, no one expected anything but a long, grim year ahead. Of course, in hindsight, we now know markets rebounded nearly as quickly as they plummeted. They ultimately delivered positive annual returns across most asset classes.

Describing 2020 as an "everything rally", one Wall Street Journal columnist wrote, “Investors ended one of Wall Street’s wildest years on record by piling into everything from bitcoin to emerging markets, raising expectations that a powerful economic comeback will fuel even more gains.”

What insights can we glean from this experience to guide us?  

If nothing else, the past ten months have reinforced our long-held belief that we simply cannot predict what comes next. No one can. When the temptation to abandon a free-falling market (like the one we encountered less than a year ago), or chase after winning streaks is strong, we believe that an investor’s best move remains clear: trust in the durability of your carefully planned portfolio.  Tune out flashy predictions and focus on what you can control.  Make proactive adjustments based on your needs and goals.  We cherish the trust you place in us as your partners on this journey. 

As we move into 2021, we will: 

• Guide you in rebalancing your portfolio, harvesting tax losses when practical, and changing allocations when warranted.
• Help you interpret the 5,600 pages of the newly passed Consolidated Appropriations Act, so you can manage your next financial moves accordingly. 
• Assess potential ramifications of tax legislation, and advise you on tax and estate planning moves that may be warranted for you in the years ahead.  
• Remain by your side as you encounter whatever challenges and opportunities 2021 may bring.

Thank you for your confidence in us.  It is our privilege to serve you, and we look forward to our continued partnership as we navigate whatever comes next.  In the meantime, we wish you and yours a healthy and prosperous 2021. 

This article is intended for educational and informational purposes only and does not constitute specific tax, legal, investment, or financial advice. The information provided is derived from sources believed to be reliable and is based on current tax laws and regulations as of the date of publication, which are subject to change. Aegis Wealth Management, LLC is not a law firm or accounting firm and does not give legal, accounting, or tax advice. Readers should consult with a qualified legal and/or tax professional to understand how these laws and regulations may apply to their unique circumstances. This material is not intended to be relied upon to avoid tax penalties under U.S. federal tax law. Past performance does not guarantee future results. All investing involves risk, including risk of loss.