Key risks and rewards for ASX share investors heading into 2021

Whatever your feelings on 2020, it was certainly an exciting year for ASX share investors.

The speed of the market crash and subsequent rapid rebound is something we’ll likely be sharing with our grandchildren. And something we hope not to see repeated.

As a quick recap, from 20 February through to 23 March the S&P/ASX 200 Index (ASX: XJO) plummeted 37%. Since that low, it’s come roaring back, up 47%. That’s largely been driven by unprecedented government stimulus spending alongside near zero interest rates and massive quantitative easing (QE) packages from the world’s top central banks.

Investors who were swept up in the wider COVID-driven market panic and sold after the ASX 200 was already tanking are likely nursing some…