Imagine on 1 January 2021 someone found a newspaper which foretold all the events of the following 12 months. It would tell of rioters attacking the US Capital building, the Taliban swiftly reasserting control of Afghanistan, a UN climate report warning of ‘code red for humanity’ and of course several new COVID-19 variants, continued restrictions on daily life and ongoing disruption to industries and businesses.
Now how do you think that person would have invested knowing all that was going to happen? My guess would be they probably would have steered well clear of the stock market, and perhaps invested in less risky assets like bonds. Had they done that though, they would have ended the year with disappointing returns.