As 2020 as 2020 was (no typo here), 2020 was a great year for some investors. If you invested in some stocks, you could have gotten 10 times your money. Crypto got more adoption etc
Going into 2021, the phrase “regression to the mean” has been on my mind. The phrase simply means
that life averages out, or life tends towards a steady average. That is, years of high gains or huge wins are often followed by years of lower ones such that when we look back, growth maintains a steady average
What does this mean? 2021 might not be as great a year for the stock
market and other high-risk investments as 2020 was. It also means that if you’re going into the stock market or buying crypto because you want to double/triple your money in a few months as some people did in 2020, that might not happen.
If you’re looking to invest, do it for
the long term. Don’t take high risk or invest in things you don’t understand. Take your time. Do the research.
“When the student is ready, the teacher will appear” - Lao Tzu
When the time is right, the right opportunity for you will present itself. You just have to prepare
yourself (get ready)
2020 has given some of us a taste of supernormal returns. People were doubling their funds in days/weeks etc. When we see returns like these, it isn’t easy to rate any investment that’s not offering something close to that in a similar time frame
But here’s