You would probably have heard online about some “investment gurus” are trying to predict what is coming up – whether it is a financial crisis or end of the world or war or something one way or another.

Whoever tells you that they can tell you that they can forecast what stock to buy at what time period so that you can make the most money in the shortest period of time – pls stay far away from them because no one can predict the future.

Even one of the best investors in the world, Warren Buffet, does not get it right all the time. A person could be “lucky” to make certain decisions that turned out right for them once. That person could even be right 3 times or even 5 times in a row. But to extrapolate that “luck” into the future over decades of investment time horizon is almost impossible!

Imagine going back to the midst of the pandemic, end of 2020 when the health crisis is still unfolding and the light at the end of the tunnel is nowhere to be seen. If anyone were to tell you that the stock market would have given you one the best returns in the history of investing, you would probably think he is crazy. But the markets did gave a return of almost 20% for the whole of 2021!

And if you actually study markets that go back all the way to 1920s before the Great depression, the overall equity markets over the long term had captured an average of 9-10%pa annualized throughout that period. However, it was not a smooth ride, it was an upgoing trendline but punctuated with unexpected ups and downs of the markets on a daily basis depending on what kind of crisis was going on at that particular point of time. Sitting through those extreme downturn periods was no fun either.

So rather than investing with a perspective where you can predict where the market is headed for the short term, set your goals and plan effectively in advance over various time frames on a globally diversified portfolio at a low cost. Work with an experienced advisor to ensure that you have different asset classes for diversification so that you have peace of mind. And sit tight in your seat while you let the investment markets be your best friend with time on your side. In fact, you can actually take opportunities to buy regularly along the way whenever the dips come in from time to time when discounted periods present itself. All this happens while you are tilting your entire portfolio towards areas of higher expected returns without the need to take on additional risks!

This strategy only works when you are able to control your emotions and have deep education and deep conviction about how markets work. Or if you know of someone who would like to journey with a trusted advisor who understands how markets work and want to find a simpler way to get to their life goals, reach out to us and we will be happy to have an initial chat to see if there is a fit to help.