With 2014 now upon us I thought I would set out for all and sundry in great detail the predications for the current year and what you should be doing about them. Well great detail maybe a little bit of an overstatement, but the detail will be sufficient enough for you to implement an action plan to take advantage of what I am about to predict.
Are you ready?, Got your pen/pencil/phone/mouse/tablet poised and waiting….?
Here we go…….you hanging on?
I can predict with 100% accuracy that over the course of the 2014 year the stock market, property market and Bond/Fixed Interest market will both rise and fall.
There, it’s done, I said it out loud. Well not out loud but you know what I mean.
O.K., I know, its not exactly earth shattering is it?, but that first part, that bit about 100% accuracy is rock solid. So what should you do about it? Well first thing you shouldn’t do is ignore this and run off to take advice from the newspapers or articles currently espousing about the best stocks and best sectors to invest in. If you are tempted, take a look at this article from IFA about how 2013’s predications went.
If you still don’t believe me, read this somewhat “fruitily worded” blog from the world renowned Barry Ritholtz.
You done yet and back with me?
Alright the first thing that we need is to look at your plan to see what your goals and objectives are and what you need to accumulate to achieve them.
What’ s that you said?, I didn’t quite catch that………Oh, you don’t have one of those….hmmm interesting. So what exactly are you investing for then?
Your future, right got it, so what does your future look like? Have you sat down with your spouse/partner and discussed this together. Here’s an interesting exercise for you to do when you get home tonight, why don’t you ask your spouse/partner what their ideal future looks like and as your listening pay particular attention to whether you are in it or not!
But I jest, seriously, before you make any investment decisions, which is actually the easiest part of the process, why don’t you sit down and take some time to think about what you are actually investing for.
Once you have thought about that, you could do something outrageous and actually have someone help you put together a plan to make it happen. If you actually did this you would be part of a community of people who have the second most popular investment process on the planet and I would be glad to welcome you to the club.
I know what you’re asking now, why do I want to make my investment decisions based on a plan that has considered what I want my future to look like if its ONLY the second most popular strategy in the world?
Because the most popular strategy in the world…………Is winging it with no strategy at all.