Are you worried about how your investments are faring this year? We can’t say there is absolutely no reason to worry but what we can say is that you are not left with no recourse. You can find ways to worry less and strategize about how to make the most of the earnings you do have.
In “This Investment Trend Will Deliver a Profit Bonanza in 2021,” Forbes. com offers advice to investors who are preoccupied with the performance of their investment portfolios. People are justifiably concerned. Companies are going out of business. The economy has taken a hit from the pandemic that brought business as usual to a halt in some places. The writer imagines that people are thinking, “…our economy is still behind, so shouldn’t stocks be behind as well?” but reminds readers that “…stocks are forward looking—they’re not priced based on present earnings but future earnings growth.” The writer isn’t exactly saying there is nowhere to go but up since some stocks have not hit rock bottom; rather the idea is that there are industries that will rebound and others where value will increase as the world recovers from the effects of the pandemic.
The Motley Fool reminds readers who faced stock market losses this year that they can “…You can write off your losses to offset short-and long-term gains of the same type and then use the excess to reduce the other type of gains.” The article “Stock Market Loss in 2020? Don’t Worry—Losses Can Reduce Your Taxes” acknowledges that the frustration of these losses but suggested a “a smart way to profit from your pain.”
A Fee-Only financial planner can help you figure out how to recoup from investing losses and refine your financial goals if necessary so you can start the upcoming year with confidence.