Description

In the last of his quartet of bite-sized Assemblies on investing, Timeline investment strategist, Laurentius van den Worm, tackles the topic of market forecasting.

Given our recent experience with high inflation, higher interest rates not to mention pandemics, wars and conflict, is there much point attempting to forecast the future?

Or put another way: what's the outlook for forecasting (geddit? 😉)

Tune in and you'll soon discover that Laurentius thinks three things are worth remembering:

1. active managers rarely outperform the market long-term. Investors should get low-cost market exposure rather than try to beat it;
2. missing just a few of the stock market's best days over decades can seriously affect overall returns. Timing the market is extremely difficult, so investors should stay invested; and
3. equities have created significant wealth over the past century and remain an essential feature of long-term financial plans.

What's more fixed income can help reduce volatility (and traditional asset allocation still makes sense despite recent volatility).

The takeaway? Long-term historic trends remain a pretty sound basis for forecasts despite recent volatility. And equities tend to reward patient investors with long time horizons.

Rather than market timing, appropriate asset allocation and risk management enable investors to endure short-term swings.

But don't take our word for it. Listen yourself now.

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