Up & Coming Weekly

December 29, 2020

Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.

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Page 17 of 24

WWW.UPANDCOMINGWEEKLY.COM DECEMBER 30, 2020 - JANUARY 5, 2021 UCW 17 MONEY 1 TAUREN WELLS Famous For (I Believe) 2 CAIN Rise Up (Lazarus) 3 WE THE KINGDOM God So Loved 4 MATTHEW WEST Truth Be Told 5 ELEVATION WORSHIP Graves Into Gardens 6 JOSH BALDWIN Evidence 7 ANDREW RIPP Jericho 8 CORY ASBURY Sparrows 9 COLTON DIXON Miracles 10 NEEDTOBREATHE Who Am I As the year draws to a close, it's fair to say that we've all learned something about the social, politi- cal, physical and environmental forces that have affected every- one. And, in some ways, our lives will be changed, perhaps perma- nently. But as an investor, what lessons can you learn from 2020? Here are some to consider: •e markets look ahead. Here's something many inves- tors discovered in 2020: Invest- ment prices don't always move in the same direction as the overall economy. is might not have seemed apparent right after the COVID-19 pandemic struck in mid-February, as the overall economy and the stock market took big hits. But just about five weeks later, the markets began a rally that lasted several months. During this time, the economy also recovered somewhat, but still remains on weak footing. What can explain this discrep- ancy between the markets and economic activity? Essentially, economic numbers, such as the unemployment rate and gross domestic product (GDP), reflect what's happening today, but the markets are always looking toward tomorrow, which means they are anticipating a stronger economic recovery and the results that come with it, such as greater corporate earnings in 2021. No one can say for sure what the future holds, but you can usually know the market's opinion by its performance. •Opportunities will always exist for investors. Although the coronavirus seems unprecedent- ed, the equity markets have re- bounded from many crises before it. From war to global financial meltdowns, the market has seen it all. But even at the height of these events, when the markets might be most affected, individual seg- ments or industries can do well. For example, in the current environment, when many people have been forced to work and shop from home, and get their entertainment online, it's prob- ably not surprising that some parts of the technology sector have seen their economic activ- ity grow, along with their stock prices. Here's the key point: Investment opportunities always exist, especially in times of market stress — and smart investors will find them and incorporate them into their portfolios in a way that's appropriate for their goals and risk tolerance. •Patience and discipline can pay dividends. As mentioned above, the stock market dropped sharply in the weeks immedi- ately following the pandemic, but then gained steadily for months afterward. Investors who tried to "cut losses" and exited the market likely did so at the wrong time and missed out on the beginning of the upturn. Unfortunately, this is not uncommon — investors who overreact to market declines often find themselves on the investment sidelines just when a new rally begins. Rather than being reactive in this way, you may be better off sticking with a long-term invest- ment strategy, and buying and selling investments only when it makes sense for your situation, such as when you need to diver- sify your portfolio. For many reasons, it's unlikely that we'll see anything exactly like 2020 again. But some of the investment lessons we learned are applicable in every year — so keep them in mind for 2021 and beyond. Investment lessons from 2020 submitted by DEBBIE BEST DEBBIE BEST, Financial Advisor at Edward Jones Investments. COM- MENTS? 910-488-7535

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