Fact: Fund managers have lagged the S&P 500 index in 12 of the last 13 years. Despite this fact investors (professionals and individuals) continue to think they can do better by picking stocks and timing the markets in normal times, let alone times of adversity.
When you think about the year 2020, you may think it was a roller coaster. The roaring economy and stock market that was shuddered by Covid-19 (when the U.S. stock market dropped 34% over 5 weeks last February and March) followed by a sudden surge in the stock market as people had new needs and found new ways to adapt and move on.
If ever an investor were to depend on stock picking and/or timing the market – 2020 was the year! Or was it? That was not the case according to the WSJ article, “Stock Pickers Trailed Market Again in Roller Coaster 2020” by Karen Langley dated March 11, 2021.
It would have seemed as though fundamental analysis would have identified businesses to buy or sell. You would have thought professional stock pickers would have quickly reviewed which companies were pivoting well versus not so well and changed their portfolios to that end.
But in the end, this wasn’t the case. It is much harder than it looks.
There is a better way to invest long term. We are here to help match your investment experience and return expectations with a personalized plan to help achieve your goals. Remember – the most important reason you hire an advisor is to trust them to help you achieve your goals. We are here to help you stay on track, to focus on the long term, and avoid mistakes and pitfalls whenever your emotions tell you to “do something” in difficult times.
If you have questions about your goals, your plan, or your investment approach, feel free to give us a call 770.992.4444 or email us at advisor@odysseypfa.com.