2023 was a great year for the economy and investment markets. The S&P 500 was up 26.3%, international large and mid-sized company stocks were up 18.9% and US corporate bonds were up 5.5%. And the U.S. did not go into a recession. Which of the pundits got these predictions right for 2023? None of them. What’s it all mean? Here are 3 takeaways you can use:
- Don’t listen to experts/pundits when it comes to predicting the future. Most of the time they get it wrong. When they ocassionally do get it right, they will tell you about it. Over and over again! Which makes you think they are right more than they are wrong which isn’t the case. This goes for financial advisors too. If someone claims they have the “secret” for beating the markets. Don’t walk: RUN away! The key to your long-term investment success is finding a firm/advisor who spends time understanding your goals, your investment risk tolerance and offers ongoing education and coaching.
- Study what works. Do your homework. I recommend reading the Wall Street Journal and the strategies of long-term investment success.(want things to read? Reach out) Historically, what works is building a portfolio and sticking to it. Action, many times, is not good for long term investment success.
- Have a diversified long-term investment strategy. Understand yourself and how much risk you want to take on your long-term investing. Put a portfolio together and stick to it. Would you like a risk assessment? Let us know! We’ll email you one.
We are here to help you implement these takeaways. Let’s chat.