The markets have not been this volatile since the 2008 crisis.
This year, we experienced a euphoric market at the beginning of the year, followed by the most violent stock market crash in history. Then we followed it up with the fastest rebound in history as well.
We saw many was panicking selling in March and a majority did not dare to invest again in April,
The human being is stubborn, refuses to be wrong, stays too long with their losing positions and generally capitulates at the worst moment. Or they are afraid and take profits too soon, only to see the stock they were holding continue to rise without them. Depending on the day, humans believe they are invincible or have doubts. These are all behaviors that make us make mistakes as investors. I am no exception. Knowing I am my worst own enemy, I stop letting my emotions dictate my investment decisions. This year, again, I let the algorithm continued its mechanical work, ignoring human hysteria and reacting only to signals from the thousands of lines of code that make up its core.
The year ended with over 20% returns in stock portfolios. It is quite good considering the violent stock market in March.
The year 2021 could be more fascinating. We shall see how it pans out eventually.
I will start to share a short macroeconomic situation on monthly basis from January 2021 onwards.
