That ended well. Thank goodness.
It was a year to be patient. Financial markets struggled to regain ground from the prior year’s losses for much of 2023, swooned in the fall and then came back to make (most) things right during the last quarter – at least for those who held their financial assets the whole year.
For those who move in and out or those who bet on trends, there was disappointment to be found over the last twelve months.
So, it was in 2023 and for the most part, so it always has been: financial markets best serve long-term investors and have historically been rather harsh to the short-term speculators and the trend chasers. As we are fond of saying at Iowa Wealth Management, “the best way to capture the long-term rate of returns… is to be a long-term investor.”
So, you will need to be patient… and you will need to be an investor.
This is an election year. Unfortunately, over the last couple of decades our political culture has become coarse and at times vulgar. Political communications have less and less to do with ideas and more and more to do with emotions. Election years tend to get heated, especially the closer we get to election day, and you’ll want to guard against the “animal spirits’ of this year. Simply put, emotions are not good for investors.
Speaking as a former Political Science major with forty years of investing experience, I can attest that thinking too much about politics will not make you a better investor. Just a less interesting dinner companion.
Have a great 2024 everyone, and let’s keep it civil.
