Who Would Have Thought

Who Would Have Thought

One of the best things about a year coming to an end is to look back and identify key lessons that we can use to improve our decision-making going forward. This is especially true in the investment realm.

2023 – Lots of Bad News

Late in 2022, market and economic experts didn’t just forecast a recession, they put probability of a recession occurring at 100%.¹

Then, early in 2023 we witnessed several regional banks fail and predictions abounded that things would get worse.²

We also experienced mortgage rates soaring to their highest level in over 23 years, resulting in a significant drag on the housing market.

And in late fall, global conflicts increased more with the beginning of a mid-East war – spurring talks of a potential World War III.³

The Danger of Foreknowledge

If you had known these negative events were going to occur, would you have invested? Be honest!

These are serious events, any one of which could have derailed the economy and markets.

Yet, despite all the bad news, scary headlines, and dire predictions, the market was up double digits for the year.⁴

Lessons to Learn

So, what can we learn from 2023 to improve our future investing decisions?

1. Acting on headlines is risky. They may be alluring but they seldom predict the market.
2. Markets are complex. A lot of factors go into what makes them go up and down.
3. Therefore, it is best to let your plan and trusted thinking partner guide your investment decisions.

Stay invested,

– Kaleb Paddock, CFP®

Learn More

You can learn more about Ten Talents and Kaleb Paddock, a financial advisor based in Parker, Colorado, by clicking here.

Kaleb can be reached at (720) 710-0939 or kaleb@tentalentsfp.com.

You can check out the Ten Talents YouTube channel by clicking here.

1. Bloomberg, Oct 17, 2022
2. Business Insider, Mar 11, 2023
3. Washington Times, October 29, 2023
4. Returns YTD through Dec 28, 2023. Performance includes reinvestment of dividends. The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. All indices are unmanaged and may not be invested into directly. Past performance is no guarantee of future results.

© The Behavioral Finance Network.