We are almost at the end of “prediction” season where every insurance company, economist and fund manager bring out their own market commentary and/or predictions for the coming 12 months. If you were to take the time to read them all, you would be left in a state of flux.
Markets, by their nature, are volatile and downside volatility exists in every calendar year, no matter how low your allocation to growth assets like equities. As investors, we often miss this fact as we only receive valuations once a year and the negative period is often washed out at that point in time.
As previously highlighted, any investments you have should only be in service to your overall financial plan. By approaching your strategy from this perspective, should mean that any monies you are relying on in the next number of years should not be exposed to markets. Reacting to what others think may or may not happens is tantamount to financial self-destruction.
If you are basing your investment decisions on forecasts for the market between now and the end of the year, you are destined to fail as an investor.
If you have a financial adviser trying to do that, it is the big flashing neon sign with fireworks and loud noises screaming at you that it is now indeed time to get a new financial adviser.