---
title: BDO Wealth - December Market Perspectives
description: As markets roll into the holiday season, the turmoil of 2020 is beginning to fade from the investor psyche
---

[Member News | CGCCUSA ](https://www.cgccusa.org/en/news)

# [BDO Wealth - December Market Perspectives](https://www.cgccusa.org/en/news/bdo-wealth-december-market-perspectives-3)

 Written by [CGCC](https://www.cgccusa.org/en/news/author/cgcc) | December 18, 2020

**Source**: [BDO  
 Wealth Advisors](https://www.bdo.com/services/business-financial-advisory/bdo-wealth-advisors/overview)

### **Market Perspectives**

##### **December 16, 2020**

- Calendar year 2020 has seen markets fall at an almost unprecedented rate, and then rally at an equally unprecedented rate
- Following the sharp decline, the S&P 500 experienced the fastest (and steepest) recovery in history.
- Throughout the volatility, maintaining a long-term approach kept investors focused, with individual goals and objectives remaining the priority. 

***“The way to make money in the stock market is to buy a  
 stock. Then, when it goes up, sell it. If it’s not going to go up, don’t buy  
 it!” – Will Rogers***

As  
 markets roll into the holiday season, the turmoil of 2020 is beginning to fade  
 from the investor psyche. While the health care crisis from COVID-19 rages on,  
 vaccines are on the way, and investors have begun to look towards the return of  
 normalcy. We have started to hear from market pundits that stability has  
 arrived. Our year end note (coming in early January) will dive deeper into some  
 of these behavioral finance concepts. As we prepare additional commentary for  
 the upcoming year (i.e. tax policy, COVID, economic recovery, stimulus, etc.),  
 this note looks back and reflects on a year which was anything but stable. As  
 the quote above humorously implies, investing is never easy, but 2020 was  
 exceptional in more ways than we can count.

From  
 the March 23, 2020 lows through December 11, 2020, the S&P 500 experienced  
 the largest percentage increase for a rolling 263 calendar day period since  
 1990. The graph below shows that this recovery rivaled the financial crisis,  
 slightly exceeding that mark. 

Clearly  
 this has been a “Jekyll and Hyde” type of year. The Dr. Jekyll portion of the  
 year was vicious, beginning at the mid-February highs, and continuing until the  
 March lows as seen in the graph below. The total decline at that point was just  
 over 30% year to date before the recovery began. The S&P 500 now stands up  
 approximately 15% year to date. 

As  
 markets head to the end of 2020, it is important to remind ourselves, and our  
 clients, that it is nearly impossible to predict the market returns over any  
 timeframe. This is the time of year in which economists, analysts, and market  
 experts attempt to “guess” what will happen in the coming year. This is a great  
 disservice to investors around the world. While we certainly do not ignore this  
 data, we are firm believers that the primary way for investors to achieve their  
 goals is to maintain a disciplined process. 2020 highlighted the rationale for  
 such an approach and reminded us of one of famed investor Warren Buffett’s  
 popular quotes:

**​​​​​​*****“In  
 the business world, the rear-view mirror is always clearer than the  
 windshield.”***

 As we conclude this remarkable year, we thank you, our clients  
 and colleagues, for your trust, loyalty, and confidence. We are humbled daily  
 by the incredible partnerships and friendships we have carved out over the  
 years with each one of you. We wish you and your families a very happy and  
 healthy holiday season and we look forward to continuing our dialogue into 2021  
 and beyond.

For any questions regarding this article etc,  
 kindly contact Larry Miao ([smiao@bdo.com](http://smiao@bdo.com/))

[View full post](https://www.cgccusa.org/en/news/bdo-wealth-december-market-perspectives-3)

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