Investing in the share market has its ups and downs, but overall it can be a promising ride towards financial success. It requires mindful risk management, but not to the detriment of your financial goals.
2023 taught us the importance of resilience and adaptability in the face of uncertainty. At the start of the year, we saw commentary on supply chain disruption leading to high inflation, further geopolitical tensions, catastrophic weather events, and talk on whether we’ll enter a recession.
However, for investors, the reality of 2023 unfolded quite differently than anticipated and, despite the initial apprehensions, the year brought its own set of surprises and opportunities. If you had sold up, opting for a safer strategy, you may have missed out on those recoveries.
So, in light of these lessons, here are some key considerations when making investment decisions for 2024.
Stay focused on your long-term goals
During market downturns, the instinct to pull your investments and move to safer options like savings accounts or term deposits often arises. However, when your time horizon is favourable, this could mean missing out on recoveries. Focusing on long-term goals is crucial when considering investment decisions.
When you work with AdviceFirst, you can have peace of mind that your investments are in good hands. Our advisers have their finger on the pulse with strong product and market knowledge, so you can feel confident when speaking to our advisers about anything you need clarification on.
Inaction, too, carries its own risks.
We know that timing the market is a strategy that rarely works. Even the most well-educated investors don’t have a crystal ball that indicates what may happen in the future, and they, too, can experience setbacks in their progress.
As we navigate uncertain waters, the default course is generally not an option. Financial success often involves taking bold, deliberate action. But you don’t have to walk this path alone – our expert advisers are here to help.
The key to maintaining progress lies in striking a delicate balance between diligently managing risk and seizing opportunities for growth (depending on your strategy). If you’re looking to wait until the volatility calms, it could pose the risk of missing out on better returns.
Key themes fund managers look towards for 2024
The managed funds we recommend are heavily researched and must pass our stringent selection criteria. You can rest assured that the recommendations we make offer reliability and have a history of providing returns for our clients.
Based on the BlackRock 2024 Global Outlook, here are some key themes our approved providers may be looking into for investing in 2024:
- Harnessing mega forces
Steering portfolio outcomes with forces that are already shaping markets. Think digital disruption, artificial intelligence, low-carbon transition, and climate resilience. - Managing macro risk
With the continued fight against rising inflation, BlackRock recommends investors neutralise macro exposures and be more deliberate on the exposures they take. - Steering portfolio outcomes with an active approach
We’re seeing a structural shift in economic cycles. As a result, investors are called on to take an active approach to steer outcomes instead of a set-and-forget model.
Embrace uncertainty with vigilance and adaptability
The lessons of 2023 remind us that, while the journey to financial success may be filled with challenges, it’s also ripe with possibilities. By embracing uncertainty with vigilance and adaptability, investors can navigate the investment landscape with confidence and resilience, no matter the conditions.
The year ahead may require us to embrace uncertainty as an inevitable part of the investment journey. It’s a reminder to stay informed, remain vigilant, and adapt to changing circumstances – all while keeping our eyes fixed on the horizon of our long-term goals.
Book a financial review
Our advisers apply industry best practice to your specific situation with a level of expertise and consideration that is unique to AdviceFirst. Our thorough approach enables us to design a customised investment strategy and portfolio to help you achieve your goals.
If you would like to discuss strategies for your existing investment portfolio, book a financial review with an AdviceFirst Wealth Adviser. Contact the AdviceFirst team on 0800 438 238 or email hello@advicefirst.co.nz.
Disclaimer: This blog is for informational purposes only and does not constitute individual financial advice.
