Another day, another crisis…
"Crash", "tsunami" and "Francogeddon" are the three buzz words smeared on financial columns.
The Australian Financial Review says talk of rising U.S. interest rates is fuelling speculation of the next market crash.
Whilst over in Europe the Swiss Central Bank's decision to remove its currency cap on the euro is a "tsunami" for the safe-haven economy.
Social media has dubbed it, "Francogeddon."
Meanwhile, over in the bull camp, Morgan Stanley chief U.S. equity strategist Adam Parker is predicting the current bull market, "to be the longest expansion ever…It could go to 2020."
If you ask me, that sounds a little too good to be true. My tip is to be prepared – markets will rise and fall.
But Mr Parker isn't the only one making bullish forecasts…
Investment bank Credit Suisse is predicting good times ahead for the Aussie share market, with the S&P/ASX200 (ASX: XJO) (INDEX: ^AXJO) expected to reach, "6000 by the end of the year," as reported in the Sydney Morning Herald.
With all this talk of rising U.S. and Australian markets, I couldn't be happier.
But to be completely honest, it's no surprise to us here at The Motley Fool Australia.
Since the inception of our flagship stock-picking service Motley Fool Share Advisor more than three years ago, we've provided our best Aussie and U.S. recommendation every month because we believed better times lay ahead in North America..
Whilst we're certainly not in the business of making forecasts, I'm pleased to report the track records of both our ASX and U.S.-listed recommendations are well above the All Ords Total Return. Francogeddon is nowhere to be seen.
My own portfolio, full of great Australian companies with overseas exposure, is also sitting pretty.
One of my personal favourites – still a firm 'buy' on the Motley Fool Share Advisor scorecard – I liked so much I added it to my family's portfolio earlier in the month. Along with three others, each boasting fully-franked dividend yields well above the interest rate on cash accounts and term deposits. I'm now 100% prepared to be invested for many, many, more years.
Whether the forecast is ASX 6000 or ASX 3000, it doesn't matter to me.
Nine of the last two market crashes have been picked correctly picked by economists. Everyone else gets lucky.
Conversely most bullish forecasts fail to take into account market crashes for a number of reasons…
1 – It's too difficult
2 – Nobody would want to buy what they're selling
3 – It's probably wrong
Tuning out the 'noise', which clogs up so much of financial markets' airwaves, is vital for long-term share market investing.
In case you're wondering, I take forecasts with a grain of salt, hold the sugar.
Of course, avoiding obvious pitfalls, helps too. And no investor will get it right every time.
Senex Energy Ltd (ASX: SXY) – my largest resources stock holding – is down another down 3% today… 48% since I bought it less than a year ago.
My Rio Tinto Limited (ASX: RIO) warrants did even worse, falling over 54% in less than six months.
I should have listened to my colleague Scott Phillips, co-investment advisor of Motley Fool Share Advisor.
Way back in 2012, when iron ore spot prices and producers (like Rio) were both punching above their weight, Scott tipped lower prices ahead. I should have paid closer attention…
Even after the 50%-plus price falls in the steel-making ingredient, there's not a single iron ore miner on Motley Fool Share Advisor scorecard.
Instead, there's a substantial amount of growing, dividend-paying shares – an antidote for record low interest rates…
Best of all, if you thought the current 2.5% official RBA rate was tough, Australia and New Zealand Banking Group (ASX: ANZ) yesterday joined the chorus of big banks and leading economists calling for a further two 0.25% cuts to the official cash rate in 2015.
ASX 6000 and 2% interest rates, here we come!
Whilst that sounds like a baby crying to term deposit holders, I'm gearing up for another great year on the Australian share market, by buying shares of good companies at even better prices…
Whether the market crashes or dashes, I'm in it for the long term… with my big dividend cheques to keep me company.
Here's to a year of happy and profitable investing.
