Ok... I somehow can't take my eyes off the drawdown on those sectors. So, given that, what is the takeaway? Because from various articles, energy and financials and small and mid caps along with emerging markets are supposed to be the 2021 winners. Is that because the drawdowns were so large in 2020? Still learning about drawdowns and why they are so important.

That was very helpful and I can understand where you are coming from. If I panicked in March 2020, I would have missed out on a huge finish to 2020. I know we can't time the market and I'm nervous after having a great 2020 year but I'm not retired or close. So, I don't want to be foolish (although I'm equity heavy) and ignore what's in front of us.
@davfor and @sven thanks for sharing. Enjoyed Reading Charles Lynn link as well. Really interesting.

Warning: Investors need to understand their individual circumstances and their volatility and risk tolerances.....
FWIW....Most of the time I just observe. Market timing is left to others. (2019 to 2020 were exceptions to this observer mind set while a new secondary investment portfolio was being established.)
These are just a few somewhat random thoughts and opinions as 2021 begins from a generalist investor who typically acts with multi-year investment time frames:
***Its important to acknowledge the stock market is very expensive by historical measures -- particularly on the growth side. The articles linked above make that clear.
But...
***The Fed is now part of the investment landscape in ways it was not in the past. That hit home to me in early 2019 when the Fed abandoned its rate tightening efforts ( Powell Put ).
***The Fed further clarified the breadth of the Powell Put by acting very aggressively last winter when the markets were in turmoil. It has also suggested it will intervene aggressively if market turmoil erupts again in the near term.
***Having Janet Yellen as Treasury Secretary will probably increase coordination between the Fed and Treasury.
***Having the Democrats in charge probably means additional fiscal stimulus will occur this year.
***The pandemic will probably have a significant ongoing disruptive economic impact for much/most of this year. The probable shape of the post-pandemic investment landscape may not come into focus until late this year or next year.
My investment portfolio thinking:
The combination of near zero interest rates, the Feds aggressive stance, and substantial fiscal stimulus helped me to decide to leave my allocation to stocks somewhat elevated by my standards when the annual review was completed in December (strong stock market performance and a shift of about 5% of the portfolio from ZEOIX to utility stocks in August had bumped it up during 2020). But, a nod to uncertainty resulted in the purchase of GBLMX, CRAAX, and SVARX as well as some trimming of growth stock holdings during the transition from 2020 to 2021.
Now I am just watching while keeping my eye on VIX out of curiosity. My crystal ball is still quite unclear about how long the Fed/fiscal stimulus part of the equation will succeed in keeping the bulls mostly in charge of the stock market. Maybe for multiple years if the Fed and fiscal policy makers navigate well??? But, maybe Grantham will prove to have been correct and the profitably investable top occurred last summer!!!
Other portfolio notes:
***There is adequate cash in reserve (SPAXX, JPST, and RPHYX) and enough investments in bond funds to enable an investment portfolio reallocation into stocks if a significant (20%+) market decline occurs.
***I am a 70 year old retiree. The dividends, distributions, and any capital gains received during the year are invested separately in the "Cash Pot" for release to a non-investment account at the end of the year. So, the set-aside beginning this month is for probable release at the end of 2021. But, there are adequate reserves outside the investment accounts to ride out an investment apocalypse event if that occurs during the year.

@JonGaltill, our own contributor to the monthly commentary, Lynn Bolin provided many insightful articles on preparing for retirement. Here is one from January 2021.
https://mutualfundobserver.com/2021/01/as-i-age/
Charles also writes for Seeking Alpha, another good resource to inform yourself in prepare for another black swan events. If you did well during March 2020's drawdown, you are on the right track on your asset allocation.
@davfor and davidmoran,
Any insights on this bullishness?

While JHQAX perked an interest in MFO discussion, it is important to assess how JHQAX performed in 2020 relative to its peers with respect to their returns and risk. As @fred495 noted that the fund uses an options strategy for the past seven years. The fund is categorized as “Alternative long/short” fund in MFO Premium.
I compared this fund to Vanguard S&P 500 index (VFIAX) as the proxy for S&P500 index without the option strategy for 2020. The option strategy enabled lower drawdown in March, -5.1% versus -19.5%, respectively, and having a shorter recovery period, 3 months versus 4 months, respectively.
However, this lower volatility is accomplished at the expense of the annual return as the market recovered in July; the S&P 500 index out-performed JHQAX, 18.4% versus 13.8% by year end. Question I ask myself is this an apple-to-apple comparison?
I also took this analysis further to over the 7 year period since the inception of JHQAX (2014). I also include Vanguard Balanced index fund, VBIAX to see if 40% total bond allocation would work better or not than the option strategy.
Here is the result in Portfolio Visualizer,
https://portfoliovisualizer.com/backtest-portfolio#analysisResults
1. JHQAX has the lowest drawdown ratio and comparable Sortino ratio to VBIAX.
2. JHQAX trails the annal returns of VFIAX and VBIAX for 1,3,5 and 7 years period.
3. The negative asset correlation of bond performed better than the option strategy over this 7 year period.
4. Overall the 60/40 allocation provides the best balance on return versus risk. However this is my personal opinion but every investors need to evaluate their own risk tolerance with respect to the return.

@Stillers ... I've done a lot of reading on FPURX vs FBALX. They are so closely correlated. Good suggestions everyone. Thank you! This is a good primer but would like your opinion. https://finance.yahoo.com/news/balanced-vs-puritan-fidelity-fund-100000950.html

John, an argument can be made for either and it would be a very close debate (as your linked article shows), ultimately decided by simple personal preference.
I prefer the L/M/S and G/B/V splatters and the slight/marginal 1-3-5-10-yr consistent outperformance of FBALX over FPURX.
That said, either one of these two is a great LT holding, AA choice, and coupled with others on my "short list," make for great core holdings in a balanced portfolio. If in doubt about FBALX vs FPURX, simply buy both at 50/50 weightings.
EDIT: BTW, I own all of the AA funds on my short list except JABAX. I have previously owned JABAX and VGSTX. I never owned FPURX. I reduced my AA holdings at EOY 2020 to just PRWCX, VLAAX, FBALX, VBIAX, FMSDX and VWIAX, all with just about the same allocations. Also, I've spent YEARS crunching AA fund options and the result of all of that time/research is these selected AA funds.

Here is another way to look at 2020 Asset Class Performance:

You get the drawdown, annual performance, and increase from the low in a single chart.

Taken From:

Can Earnings Growth Justify Current Stock Prices?

I would add VGSTX to the above list. Very diversified and had a stellar 2020. It is a fund of funds that I have had for 25 years and has never disappointed.

Agreed, VGSTX is an excellent 50%-70% AA fund that is the rough, TR equivalent of VBIAX. It being my "short list" though I decided to only include VBIAX, but VGSTX could easily replace VBIAX or be added.
Also just missing my "short list" threshold is NAINX, another AA OEF worthy of consideration in the 50%-70% cat given its Current-5yr performance.
FPURX is NOT on my "short list" as FBALX is IMO the choice between these two.

I would add VGSTX to the above list. Very diversified and had a stellar 2020. It is a fund of funds that I have had for 25 years and has never disappointed.

@Sven Yes. I had money with Matthews. A bad experience with them over the phone years ago killed my desire to keep my money with them. MAPIX had a great 2020, but did not pay at year-end. It happened all those years ago, with one particular Quarter--- which is why I was on the phone with them.... Still shepherding money for a colleague and his wife. She has some of her stuff in MAPIX and MAINX. (The rest in DODBX and DODIX.) Ever since 2010, when I rearranged their stuff. Can't complain that much, I suppose. David lately offered us some words of assurance re: MAINX. It has switch from Q to monthly pay-outs.

Many business including ours have gone virtual in our meetings in order to minimize the health hazards while running the business. Besides US is restricted to travel to many country since US has the highest infection cases in the world! I think Grandeur Peaks is doing something similar. Although it is nowhere as effective being on the ground seeing and hearing what is happening with oversea business, but there are few viable choices. With the arrival of multiple vaccines with efficiency >70%, they will help to bring back our normal lives in the near future.
Beefing up the IT support at home is not as hard as one think. Our college kids have to do remote learning since March until testing was available on campus. We moved up our data plan on broadband connection to our home; hardwired connection to multiple modems throughout the house with added wifi extenders. We all learned new virtual meeting softwares for schools and business. Our cellular plan already have unlimited data plan so it can be use as hotspot when broadband connect goes down. Overall we survived in 2020 and looking forward for the vaccines for our family.

Stop the crazy meaning everything...who in their right mind thought you could just waltz into the Capital and not learn the meaning of consequences...who thought we would have a break down in law and order...(I see where Macy's just announced pull out of Water Tower Place on Mag Mile, Chicago after being there 45 years...can you say no more looters and thugs in our stores please...ah but the tax monies!)...defund the police, crazy...police not letting up off a subdued suspect's neck, crazy...Tesla...Bitcoin....asset bubbles....folks thinking the virus is fake...
Honestly, I told the wife the other day...I don't know what to think anymore...
Here's to a saner, safer, more rational world and good health and good luck to all in 2021!
Baseball Fan

As for me, I was happy with my 2020 results---even with not much EM at all. Maybe I'll move a small bite from where it is in my bond/ballast sleeve into foreign equities. It's a really nice problem for everyone, that Markets are flying high. I hate buying at these levels, but I'll be "playing with the house's money." PRIDX. But that fund is not, ostensibly, EM. But M* shows almost 18% of its portfolio in Latin America and Asia Emerging. Less than 0.33 in Europe Emerging. I'm not surprised by that last. Which developing European countries are not run oligarch-style, like Putin's Russia? Is Ukraine in the EU yet? Will they ever throw off the Russian invasion? Putin's logic there is EXACTLY what Hitler did for the poor, downtrodden, oppressed German-speakers in the Sudetenland. And uncle Neville promised the British: "Peace in our time." In fact, uncle Donald owes some of those oligarchs big piles of money. Come to think of it. Anyway, PRIDX is closed to new investors.

From the email I received:
"Here is a link to Robert Gardiner’s Chairman Letter reflecting on 2020."
Robert Gardiner's letter was written on January 4, 2021 with the first sentence:
"Amidst the many challenges of 2020, Salt Lake City was hit with a hurricane-strength windstorm on September 8th..."
How could it be about 2021 when today is January 8, 2021?

Good Morning @Derf,
Ha! Like your commentary!
FWIW,
ECD Company plans to build an esports arena in Chicago’s Near South Side, according to The Esports Observer.
Scott Greenberg, the president and CEO of ECD and SMASHotels, is focusing on turning the property at 2500 S. Wabash Ave. into a 106,000 square-foot venue that could hold 800 spectators. It would also be equipped with three kitchens to serve food and beverages.
On another note....According to a recent report by Newzoo senior market analyst Tom Wijman, the global gaming market will generate $159.3 billion in revenue in 2020. That would be 9.3 percent year-over-year growth. What’s more, Newzoo projects the industry to surpass $200 billion in revenue in 2023
For comparison sakes, US Movie and production revenue in 2019, ~ $35B
Mucho Grande business, this Activision, Take Two Interactive, Electronic Arts, Nintendo, Microsoft...
On another note, Fanatics, currently valued at ~$6.5B, likely going to IPO
Best,
Baseball_Fan

Buying a few shares of a recently born ETF "HEGD" from Swan Global Investments just to keep on my radar. I believe its their only ETF. We shall see if it does its job.
"HEGD aims to address long-term investors’ need for capital appreciation while hedging against the risks and volatility associated with today’s often volatile markets. This differentiated solution combines the benefits of low-cost, passive investing with an actively managed hedging strategy."

Short answer: the credit is what it is; you get to keep it all.

You don't have to pay back your stimulus check, because it's a refundable tax credit
Your stimulus payment is technically a refundable tax credit, which reduces your 2020 tax bill on a dollar-for-dollar basis. It's like having store credit at your favorite clothing shop: When you apply it to your total bill, it reduces what you owe. In this case, even if you have no tax liability, the government is "refunding" your credit back to you as a cash payment.

https://www.businessinsider.com/personal-finance/will-we-have-to-pay-back-stimulus-check-2020-4

What Is a Tax Credit?
Subtract tax credits from the amount of tax you owe. There are two types of tax credits:

• A nonrefundable tax credit means you get a refund only up to the amount you owe.
• A refundable tax credit means you get a refund, even if it's more than what you owe.

https://www.irs.gov/credits-deductions-for-individuals
If it's a gift, it's a per capita gift that nearly everyone (84%) gets. It's a gift like Medicare Part B, where most (92%) participants pay only 1/4 of the true cost and they are gifted the other 3/4 out of general tax revenue (see Medicare Financial Status: In Brief, p. 5, pdf p. 7).

Hi, guys.
Two quick notes.
(1) Teresa Kong, the manager, projects high single- to low-double digit returns in 2021.

We think EM corporates will outperform EM sovereign credits ... EM investors are still largely invested in EM sovereigns, not EM corporates. The EM hard currency corporate market is dominated by Asian issuers, of which more than half are China issuers. Given the V-shaped recovery of China and the positive spillovers onto much of the region, we expect Asia to outperform other EM regions. We also expect Asian corporates to outperform corporates from all other EM regions. When you take into account a yield of about 7.4% in Asia high yield, with help of some credit spread tightening, we are looking at returns of high single digits to 10% next year.

Corporate Emerging Market Debt Poised to Shine in 2021 (12/15/2020)
(2) Ms. Kong is pretty good at her job. I did a quick check at MFO Premium and she's pretty much consistently above average for returns, downside, and risk-adjusted returns. Typically, mid-single digit annual returns. The fund has an R-squared of just 6 against the US bond market and 40-ish against US equities, which likely reflects their corporate bond orientation.
I've owned the fund since launch as a diversifying holding in my fixed income sleeve; T. Rowe Price Spectrum Income is the other fund in that box for me. That's not particularly an argument that the fund (a) is great or (b) makes sense for you, but a potential 9 or 10% fixed-income return has some attraction.
As ever,
David

@catch22, things happen. I have no issue if you leaving it. I myself run into this too from time to time.
By the way, I heard several capitals across the country are having protests. There were bomb threat in Lansing capital. Think people ought to protest for their $2,000 stimulus check instead.