Curious about the performance of the equity markets in 2020? In this week's Arista Advice we go over the numbers and why the long-term view is so important.
Hello, welcome to Arista Advice. Question of the week is : "Paul, how did the equity markets perform in 2020?"
Well, if there was a time to jump out of the equity market, throw the towel in, and be done, it was 2020, we had an unexpected pandemic, Covid-19. We had an election. We had civil unrest. We had so many things going on, but those that stayed put, let me share with you some numbers.
The U.S. broad market was up 20.8%. The international market was up 7.59%. The emerging markets were up 18.3%. The global real estate was the only negative asset class at -9%. The U.S. bond market was positive at 7.3%, and the global bond market was also positive 3.94%. So out of the six major asset classes one was negative, but the rest were positive, single and double digit returns.
I can't overemphasize the importance of staying invested in the market for long-term view. We live in a short-term world. We're all over-connected and over-reading and intaking too much information. This affects investor behavior, so please unhook and disconnect and stay invested for the long haul.
Trivia for you is: in 2020, which country performed the best? Did you know in the developed market that Denmark was up the most at 42.95%, followed by Sweden at 28%, and the Netherlands at 24%, and Finland at 23%, and then New Zealand at 21%.
In the emerging markets, Korea performed the best as a country at 46.01%, and Taiwan in second at 39%, China at 29%.
Third trivia question, "Which currency did the best in 2020, Paul?" The Swedish Krona was the number one developed market currency at 13%, and the Australian Aussie dollar was up positive 9.77%.
Hope you're well. Look forward to talking to you soon, and please remember go to AristaWealth.com to look at other tools, tips, and videos to help you. Have a great day.