2 important investment lessons from 2020

2020 is certainly a year that we will not forget in a hurry. Never before (and hopefully never again) have we seen such incredible volatility on the Australian share market.

At the height of the pandemic, there were days when the S&P/ASX 200 Index (ASX: XJO) moved more in a single session than it would ordinarily do in a whole year. This was much to the delight of day traders, who thrive on volatility.

But for the average investor, this volatility was unsettling and a lot of tough lessons were learned over the last 12 months.

Here are two lessons learned during 2020:

Diversification is important.

Over the last few years, the bull market has seen most shares and sectors heading higher. In light of this, investors could be forgiven…