A 60-second read by Victor Cannillo: Wall Street forecasts lack persistence. Their shelf life may only be a few weeks or months at best. 2020 was a great example; once COVID hit, existing forecasts became worthless. And this happens just about every year – excuses abound as to why the “experts” got it wrong…again.
Forecasts are alluring because they provide an illusion of certainty. And our brain wants certainty. The problem is that we are looking for certainty in the wrong place.
Our forecast is persistent because it is based on enduring investment truths and investor behavior. The news and markets change all the time; but this forecast does not. Not only is it reliable, it’s of immense value to help investors achieve their goals.
Our 2021 “Forecast”
• The economy/market will do something that surprises us
• Investors who watch the market often will experience more stress than those that don’t
• You will be tempted to abandon or change your plan at some point based on expert forecasts and/or short-term market performance
• Your investment behavior (discipline vs chasing what is hot/popular) will have a significant influence on total return – and is something in your complete control.
It is difficult to stick with a strategy when it is out of favor. Patience and discipline are virtues because they aren’t easy, yet they are essential for your success.
As your advisor, one of our most important roles is helping you decipher the noise from what really matters for your financial success, which is to focus on “Your Personal EconomySM” – the aspects of your life that are most important to you.
Please know that we are here to help guide you with any financial question you might have.
Contact us if you would like to discuss “Your Personal Economy SM” and how we help clients navigate through the noise.
©2021 The Behavioral Finance Network. Used with permission.