2020 Forecast In Review

Some of you might have seen my Blog titled “My Best Forecast for 2020, where I laid out some of my core investing principles.  I think it’s important for those who write Forecasts to be held accountable.  Do you ever wonder why so-called “experts” publish forecast but never go back and review just how accurate they actually were?

Here are some of the principles that I included in that forecast:

  • The market/economy will do something that surprises us. 
  • Investors who view the market daily will be more stressed than those who don’t.
  • While none of us have a crystal ball so we can’t predict the future, hindsight is 2020.
  • People will want to abandon their plan based on “expert” forecasts and/or short-term market performance.
  • Those investors who focus on what they can control often have better experiences over those who focus on things they can’t control or predict.
  • Remaining disciplined to your financial plan may result in a lower stress level than investing with a gut feeling.
  • Having “Strategic Ignorance” or not following the market may result in less stress and more personal enjoyment over watching the market.

I believe that these principles are as important today as they were a year ago. Founded on behavior that can be more predictable than the market.  My forecast was accurate because I was not trying to predict the markets.

It’s extremely difficult to predict the market and no one will always know when the right time is to cash in or go all in.  My forecast was based on how we may feel and the choices we face as investors.  I believe that these are more important to our well-being than to be able to predict the markets.

Are you ready for my 2021 forecast?  It’s the same as in 2020.  I don’t see human nature or the laws of investing changing in 2021.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Securities offered through LPL Financial, Member FINRA/SIPC. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.