An Investment Lesson from 2021

Just about every year, the stock market teaches us important lessons that we can learn and apply to become better investors, and 2021 was no exception.

Despite a strong year-end performance, we experienced inflationary pressures, supply chain issues, and recently, the Omicron variant. These concerns could have influenced investors along the way, but we also learned that markets can do well in the face of uncertainty.

Investment decisions shouldn’t be based on how concerned we are or how we feel, but on enduring investment truths and investor behavior. Keeping that in mind for 2022, we can anticipate:

  • The economy/market will do something that surprises us but will be obvious in hindsight.
  • Investors who watch the market often will experience more stress than those that don’t.
  • You will be tempted to change your investment strategy based on market performance, expert forecasts, and/or your personal beliefs about the future.
  • Your investment decisions and reactions to market events will have a significant influence on your personal investment return.
  • Investors that focus their time and attention on those things they can control will have a better investment experience than those that focus on what they wish they could control.

Conviction, patience, and discipline are virtues every investor should develop. They aren’t easy, yet they are essential for your success. Our most important role is focusing on what really matters to you and ensuring your investment decisions follow a well-planned strategy.

Thank you for allowing Biondo Investment Advisors to be your trusted partner.  We wish you a prosperous, fulfilling, and happy 2022.


Source: ©2021 Behavioral Finance Network. Used with permission.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss.