What We Already Know About Investing in 2021 – The Wall Street Journal

For decades I’ve warned investors about the folly of short-term market forecasting, but that doesn’t mean we can’t know anything about the year to come. In fact, we can already predict a few things about 2021 with a high degree of confidence.

In theory, investing is all about markets; in practice, it’s more about marketing. What will financial marketers sell in 2021? The same thing they always sell: whatever did the best last year.

So you aren’t going to hear much about REITs or energy MLPs anytime soon; real-estate investment trusts were off 8% in 2020, and master limited partnerships lost more than 30%.

Instead, you’ll hear a lot about what was hot.

On social media, the first few weeks of the year will be full of bluster and braggadocio, with everyone who owned bitcoin or Tesla Inc. in 2020 boasting about how much money they made.

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