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Before you lend much attention to the market forecasts rolling in for 2023, know this: One year ago, market strategists predicted a 7.5 percent return for the S&P 500 in 2022. Today’s reality? The market is on track to experience its worst year since 2008.READ THE ARTICLE
Take the good from the bad: So what can you take away from volatile times? Many investing lessons; Not just for 2023, but for life. Some major insights that will ring true far beyond the New Year include:
📌 Embrace risk: This isn’t to say put all your savings at stake, but reward often requires risk. And often? “Not taking enough risk can be the biggest risk of all.”
📌 Play the long game: Not golf, but as in long-term investing, where time and the compounding effect are powerful forces.
📌 Diversify, diversify, diversify: As stated here, “Real diversification means that not everything in your portfolio will be ‘working’ at the same time.”
📌 Focus on what you can control: You can’t control the market’s next move, inflation or geopolitical events, but you can control your habits and behavior toward these things.
Zoom out: It’s a term I’ve used religiously throughout 2022, and will continue to remind myself to do moving forward. Take a look at the bigger picture, focus on the long-term and stick to the purpose-based plan that was strategically created for you.