Oil…Interest Rates…China! What an exciting start to 2016. January’s volatility has many feeling anxious and for good reason. The important thing to keep in mind is that our emotions, the media, and even the opinions of well educated analysts should not be the drivers in our investment strategy. Many attempt to predict what is to come, let us be one of the first to tell you what we think will happen in 2016:
- Markets will go up some of the time and down some of the time.
- There will be unexpected news. Some of this will move prices.
- Acres of newsprint will be devoted to the likely path of interest rates.
- Acres more will speculate on China’s growth outlook.
- TV pundits will frequently and loudly debate short-term market direction.
- Some economies will strengthen. Others will weaken. These change year to year.
- Some companies will prosper. Others will falter. These change year to year.
- Parts of your portfolio will do better than other parts. We don’t know which.
- A new book will say the rules no longer work and everything has changed.
- Another new book will say nothing has really changed and the old rules still apply.
The future is always uncertain. There are always unexpected events. Some will turn out worse than you expect; others will turn out better. The only sustainable approach to that uncertainty is to focus on what you can control.
Click on the image below to learn more about one of the things you can control.