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Disciplined Perspectives and Your Personal Economy: The Only "Forecast" that Matters

Investing Baron Team Insights

A 60-second read by Victor Cannillo:  Most investors love economic and market forecasts. Forecasts are alluring because they provide an illusion of certainty. And our brain wants certainty. The problem is that we are looking for certainty in the wrong place.

A certain forecast will be right from time to time, just like a broken clock. But market forecasts are not reliable, no matter what your brain tells you.

Unlike market and economic forecasts, our "forecast" is based on enduring investment truths and investor behavior. These factors are more dependable than market outcomes and more important to an investor’s well-being.

Our 2023 “Forecast”

  • The economy/market will do something that surprises us 
  •  The financial media will emotionalize headlines and short-term market moves to entice you to tune in - so they can achieve better ratings
  •  Investors who watch the news and stock market often will experience more stress than those that don’t
  •  Your investment decisions and reactions to market events will ­­have a significant impact on your personal investment return
  •  You will be tempted to change your investment strategy based on market performance, expert forecasts, and/or your personal beliefs about the future 

As your advisor, one of our most important roles is helping you decipher the noise from what really matters for your financial success, which is to focus on “Your Personal EconomySM” – the aspects of your life that are most important to you.

Please know that we are here to help guide you with any financial question you might have. 
Contact us if you would like to discuss “Your Personal EconomySM and how we help clients navigate through the noise.

Disclosure: This is a general communication being provided for informational purposes only.  Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, legal, tax or investment advice.

©2023 The Behavioral Finance Network. Used with permission.