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A year ago things were good, people gathered, masks were only for extreme cold and fans attended sporting events. Now, heading into 2021, the stock market is riding high but the economy is struggling while people’s lives have been completely flipped upside down. To make sense of what investors can expect in 2021, retirement planning financial advisor Jordan Schwartz of Strategic Wealth Designers joined the newscast. He says that the market has front run the market up to the highs we are seeing right now, based on the expectation that things will return to normal sooner, rather than later.
“You can’t predict the market is the age-old adage but never was that more accurate than in 2020,” Schwartz says. “2021 has it’s own set of difficulties ahead. We don’t have any kind of accurate timeline at this point as to when the virus could be behind us, we have hopes of June or July but we don’t have certainty. We also have a new administration coming in and the market will be watching closely to see what changes they may choose to make. It would be wise to remain cautious with your investments.”
The stock market historically moves in the same direction as the economy. Right now, the market and the economy are not on the same page. Schwartz says that if your investment portfolio is largely invested in the stock market, you should be paying close attention to what it is doing this coming year.
“The stock market keeps rising but it’s not sitting on firm ground right now,” Schwartz says. “I see people in the office all the time who have 60, 70 even 80% of their financial portfolio sitting in the market and that’s a lot of risk to be carrying right now. If someone is close or in retirement, they likely should not have heavy exposure to risk because a big loss will hurt a lot more than a big gain at that point. 2021 holds a lot of uncertainty so be sure your protected from a potential rollercoaster ride with your assets.”
Schwartz says if the country can get past any and all strains of the virus by the halfway mark of 2021, then the market could see a strong rise but given the uncertainty around the pandemic it’s hard to predict what will be happening at that point. To see additional stories surrounding business and economic news for the Denver area, visit https://KDVR.com/Money and if you have a question for Jordan send an email to email@example.com.