3 Investment Lessons from the First Half of 2021

For the most part, the markets behaved in line with expectations

John Rekenthaler 12 July, 2021 | 8:47AM
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The first half of 2021 reinforced three investment principles, two of which are long-standing, and one of which is quite new.

The first is that the financial markets are essentially rational. There are anomalies, which I will shortly discuss. However, the general pattern is clear: most securities move logically. Their movements often puzzle contemporary investors, because background noise frequently obscures the essential facts. But when viewed in hindsight, investment behaviour is usually scrutable.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

John Rekenthaler

John Rekenthaler  is vice president of research for Morningstar.

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