There were many lessons to learn from 2020 but the biggest may be to ignore the Wall Street Forecast. If you’ve read any of my previous blogs, then you’ve may have heard this before. And again, in my opinion, the “experts” were wrong……. again. By a long shot, I might add. Many of the experts claimed that there would be a volatile market due to China and/or the election. What most, if not all, didn’t forecast was the largest pandemic of our generation and a global economic shutdown. “But they couldn’t predict a pandemic, right?” Exactly! That’s the point. So-called “experts” can only give you forecast on what’s currently being discussed or whatever happens to be on their minds. These forecasts can be very persuasive and give a false sense of certainty but often they move investors to make harmful investment decisions. Taking their eyes off their plan and can result in costly mistakes. Over the past 20 years, the average investor has underperformed just about every asset class because of frequent buying/selling or chasing of a strategy. A lot of times this is influenced by these “experts” financial forecasts*. Let’s learn from 2020. From here on out, let’s learn to ignore Wall Street forecasts and stay disciplined, stick to your plan. One of my roles is to help you do just that.
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.
*Dablar study of Investor Behavior