Blue Chip Wealth Economic and Market Update – January 2021

Learning from 2020

In 2020, the Australian share market, as measured by the S&P/ASX All Ordinaries Index (‘All Ords’), has been setting 30-year records:

• In the month of March 2020, the All Ords fell 20.9%, the market’s biggest fall since October 1987’s 42.1% crash
• The Australian market immediately rebounded in April 2020 returning 9.5%, which was the All Ords biggest monthly gain since its 13.6% increase in April 1988
• Then in November 2020, the All Ords returned 10.2%, overtaking April’s monthly gain to become the ASX’s best month since 1988.

Investors who stayed the course have been well served. The lesson to be learned from 2020 then for investors is:

Stay the course.

It is imperative that investors look beyond the positive and negative commentary and concentrate on long-term goals. Many adjectives and considerable emotive language have been used in 2020 to describe the outbreak, the vaccine and their impact. All of these have the potential to impact our investments, the key is assessing impact on long term outcomes.

We’re looking forward to a great 2021!

Should you have any concerns or questions about your investments, please contact me direct on 0414 583 558

Graham Slip
Managing Director
Blue Chip Wealth Management Pty Ltd

Comments are closed.