How to Invest in 2021

thebalancemoney.com:

While 2020 ended up being a good year for investors, with the S&P 500 gaining about 16% for the year, it was anything but a smooth ride. From record-high levels in early February, the S&P 500 dropped over 30% by late March due in large part to the economic fallout from COVID-19. 

But from those March lows, the market rallied through the end of the year. These gains were uneven at best. E-commerce giant Amazon was up 76% by close on Dec. 31, while Apple, another stock that benefited from stay-at-home restrictions, gained over 80% by year’s end. On the other hand, some stocks in industries hit hard by the pandemic suffered major losses in 2020. Carnival Cruise Line is a good example: Its shares lost over 57% for the year. 

So what does 2021 have in store for investors? Here are some issues to consider when formulating your investment strategy for the year. 

There is no playbook for investing during pandemics because, historically, they have been once-in-a-lifetime events that eventually end. However, parallels can be drawn with investing during a recession. 

According to Simon Tryzna, chief investment officer and wealth advisor at ClearPath Capital Partners, typically, “investors stay invested during a recession in accordance with their long-term strategy.” 

As we saw in the wake of the global financial crisis of 2007 to 2008, investors should focus on their long-term investment strategy to stay true to their financial plan. There will always be short-term events that affect your investments and the stock market, but overreacting to them can derail your progress toward your long-term goals. Plan your investment strategy so it works even after a recession or pandemic ends.

As another recommendation for 2021,