If 2020 wasn't wild enough for investors, welcome to 2021. From one extreme of lower rates for longer, to inflation fears and rising interest rates, investors have their work cut out for them.

You'd be forgiven for having missed the rise of longer-term interest rates in the US with all that is making headlines presently. In fact, the US 10Y-2Y yield curve is the steepest in almost 5 years. Why is this important you ask? Well, it depends on who you ask. Bulls will tell you it's a sign of recovery, and the bears will tell you this is the beginning of decline in stocks. Sentiment Trader recently shared their analysis, so I decided to take a look myself.

The confusion and madness that unfolded during 2020 was like nothing we have seen before. In fact, the end of 2020 was a nail in the coffin for stock market pundits. Imagine you were an innocent bystander, just looking onto the chaos, trying to comprehend what it was that was going on - you would be shell-shocked.

Everyone loves a party. The bigger the better. Right? The slight downside to these big parties are the big hangovers. We saw this playout in the GameStop saga. Here's the latest total return for GameStop for the last 12 months just in case you missed it - to the moon (and back).

​And how's that for a start to the year. If you are waiting for markets to settle down, you'll be waiting a while I'd say. Markets don't settle down, it's the nature of the beast. These are the rules of the game. It's no different to having children, they throw tantrums, scream, yell, and don't do what we want them to do. Yet over the long run, I believe, the pros associated with having children far outweigh the hiccups along the way. This is super important to understand when investing in the stock market. Just like my kids don't give a sh*t about what I think, the stock market doesn't give a sh*t about what you think - it'll do what it does.

America will be subject to water rationing by 1974 and food rationing by 1980. - Dr Ehrlich, Ecologist, 1970 Human beings have a tendency to extrapolate the past into the future. Indefinitely. It's called extrapolation bias - creative name, I know.