When markets exhibit volatile behaviour investors often ask for predictions. I came across the following predictions from Jim Parker, a financial writer in Sydney, Australia. It is such a refreshing view, that I wanted to share it with you. It points out the noisy opinions we often hear as investors, and reminds us to focus on what we can control.
“We are all free to speculate about what might happen in the economy and markets. The danger comes when you base your investment strategy on such opinions. In the meantime, if you insist on following forecasts, here is a list of 10 predictions you can count on coming true in 2016:
Markets will go up some of the time and down some of the time.
There will be unexpected news. Some of this will move prices.
Acres of newsprint will be devoted to the likely path of interest rates.
Acres more will speculate on China’s growth outlook.
TV pundits will frequently and loudly debate short-term market direction.
Some economies will strengthen. Others will weaken. These change year to year.
Some companies will prosper. Others will falter. These change year to year.
Parts of your portfolio will do better than other parts.
A new book will say the rules no longer work and everything has changed.
Another new book will say nothing has really changed and the old rules still apply.
The future is always uncertain. There are always unexpected events. Some will turn out worse than you expect; others will turn out better. The only sustainable approach to that uncertainty is to focus on what you can control.” Jim Parker
Colin Barry, Canfin Financial Group, is a Certified Financial Planner (CFP) who works with families and small businesses to plan their finances and make the most of what they have. Visit www.colinbarry.ca for more information. Fee for service financial planning and investments provided through Canfin Magellan Investments Inc. Insurance provided through Canfin Capital Group Inc.