by Richard E. Reyes, CFP
As the title of this video states it’s that time of year again. Everywhere you look in the financial media whether it be magazines or TV someone is making their predictions for what the economy and stock market will do in 2012. I actually enjoy this and read many of these predictions which has proved useless time and time again. So to keep with the financial crowd, I too will attempt to make the following predictions for 2012:
• Markets will continue to go up and go down. Some days it will go up a lot and some days it will go down a lot.
• The financial media and other financial planners will continue to believe that they know the reason for each market move and that there is the perfect investment that will cover every possible situation.
• and last but certainly not least Jim Cramer will continue to scream and predict things wrong but lead you to believe he knows what he’s doing.
Well I hope you understand I am being facetious but the truth is that trying to pick the hot sector, hot stocks or hot tips has always proved to be
a fool’s game. Market timing generally ends badly for most and is proven that success is based on luck rather than skill. Remember, if there was someone who actually knew with certainty which stocks to pick, why would they have a reason to tell you.
So what should you really be doing in 2012. In 2012 you should resolve to take a long and realistic view of your of your financial situation.
You need to stop chasing fantasies. You are not going to get what we want by beating markets or picking the worlds most perfect investment or designing the perfect bulletproof financial plan. In fact when we try to do all these things we get into real trouble.
And that’s why you need to hire a professional Certified Financial Planner who works on a fee. The financial planning landscape isn’t getting any less complicated. While this may seem like a self-serving comment of course, ask yourself how you are doing? Do you know how much you will need to ensure a comfortable retirement? Does your investments match your goals and your risk tolerance? Will you run out of money before you run out of life?
Lets also resolve to work at making decisions that make sense. Understand that no one can control the markets or the economy, but our behavior and how we react is up to us.
My best prediction is that those who make 2012 the year they get their arms around their overall financial situation will end the year feeling like they are in control of their financial future, no matter what the year may bring in terms of market gains or losses.
If you are looking for a brief, plain-English introdution to investing, don’t forget to BUY my book, Dirty Filthy Lies My Broker Taught Me & 101 Truths to Money and Investing. Order my book now and I will also send you my Investor Awareness Guide and listen to our The Seven Deadly Investor Traps that Destroy Your Wealth and the Three Power Strategies to Fix Your Portfolio Fast! These materials will equip you with the information you need to begin putting your investment experience back on track.
Wealth and Business Planning Group, LLC (The Financial Quarterback™) is a Registered Investment Advisor in the State of Florida that provides Fee Planning and Asset Management. Depending on your state of residence, Wealth and Business Planning Group, LLC (The Financial Quarterback™) may not be able to immediately provide services. For more information go to www.thefinancialqb.com. Richard E. Reyes, CFP is an Investment Advisor and President of Wealth & Business Planning Group, LLC (The Financial Quarterback™).