The 3 Worst Moves You Can Make If the Stock Market Crashes in 2021

This has certainly been a year that the investing community won't soon forget. Unprecedented volatility caused by the coronavirus disease 2019 (COVID-19) pandemic initially cost the broad-based S&P 500 (SNPINDEX: ^GSPC) more than a third of its value during the first quarter. Amazingly, the steepest move into bear market territory in history was followed by one of the most ferocious rallies on record. In 12 days, when 2020 comes to a close, it'll likely be with the S&P 500 delivering above-average annual gains.

The question is, can the profit party continue in 2021?

On one hand, there are catalysts that could propel the market higher. President-elect Joe Biden, who'll be sworn in on Jan. 20, has pledged to fight for additional fiscal stimulus. Meanwhile, the Federal Reserve is expected to keep lending rates at or near historic lows through at least 2023. The U.S. economy will be propped up in a variety ways, which would, presumably, be conducive to additional upside in equities.

Source Fool.com