2 Lessons Investors Learned From COVID

Here's a simple formula that can allow anyone to earn solid returns on the stock market:

Both steps sound easy enough, but they can be difficult to execute, particularly in the face of volatility. And the past 12 months have cursed investors with years' worth of volatility. We witnessed a global pandemic that forced many countries to issue stay-at-home orders for much of their populations, thereby slowing down their economies.

The initial effect of the COVID-19 outbreak on the stock market was devastating. For example, the Dow Jones index fell into bear-market territory -- defined as a 20% drop from its most recent high -- in a mere 20 days in March, the fastest such descent in history. The broader market has largely recovered, but the wild ride investors experienced in 2020 has undoubtedly taught (or reinforced) some valuable lessons.

Continue reading

Source Fool.com