As another year comes to an end, there’s an air of optimism. The advent of a New Year… a clean slate, brings with it hopes of a better future, and rightly so. The upbeat sentiment can be all-pervasive.
For instance, even investors are looking forward to a more fruitful 2023. As is customary, investment experts are foretelling what the New Year bodes—which asset class will be in favour, which sector holds promise, even which stocks can be multi-baggers.
This is also a good time to introspect. The last few years have been eye-openers: 2020 was marked by one of the worst pandemics in modern times; equity markets both—crashed and rose—sharply. In 2021, the virus caused more suffering, yet markets continued their northward ascent. 2022 will perhaps be remembered for a geopolitical conflict, soaring inflation, and a serious likelihood of global recession.
No expert predicted these events. To be fair, I don’t think it’s possible for anyone to do so. Therein lies a lesson for investors. Rather than focusing on predictions (factors ‘beyond anyone’s control’), investors would do well to focus on what they ‘can control’. By all means, keep an eye on what experts are predicting, but make investments based on what’s right for you.
The basics of investing don’t change because it’s a New Year. In 2023 too, risk-appetite and goals should guide investment decisions. Asset allocation continues to be as important as ever.
Also, let’s not underestimate the importance of being resilient. To quote a cliché: ‘What doesn’t kill you, makes you stronger’. Living through the pandemic has likely made us more resilient than we realise. Let’s instil that resilience into our investment decisions.
Let’s be optimistic, resilient, and fundamentally-driven, while investing in 2023. Hopefully, a brighter future awaits.
Happy Investing!
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