Well, we made it.
One more trip around the sun. And, as of a few hours ago, another one just kicked off.
2023 was… an interesting year.
They all are, to be fair. We should know to expect the unexpected, but that doesn't make it easier sometimes, does it?
The good news? The ASX had an average-beating year, with the All Ords up 9.8%, plus dividends, for a total that was probably somewhere north of 13.5%.
And that's despite inflation, interest rates and international wars and conflicts.
The usual yearly average is closer to 9%.
So, what about 2024?
I have no idea. Nor does anyone else.
Oh, they'll tell you they do… the combination of ego and clickbait will assure you of that. 'About average' doesn't grab the headlines, but the usual suspects' dire predictions of doom do.
Sigh.
I hope you know by now that you should ignore them.
I don't do predictions.
And, for what it's worth, I'm not big on 'resolutions' either. They tend not to work, and only leave us disappointed.
I am, however, big on optimism.
And not the Pollyanna optimism that's divorced from reality.
I'm a realistic optimist. The world is getting better. Not every single day, and not without exceptions, but it's happening.
We should fix the problems, of course. But we shouldn't let those problems blind us to the reality of progress and improvement.
I think the same is true of investing. On two fronts:
First, even in years when the bad news seems ascendant, the market can still rise, as it did in 2023.
And second, even when there's down years, the overall trend has continued to be up.
Perspective — true, long term perspective — can be the investor's best friend.
Now, I try not to reuse my content in this space. But I do make one particular exception.
Each new year, I share something that I hope will help you take — or keep — control of your financial life.
Something that you can share with friends and family.
And something that'll put you — or keep you — on the path to real wealth creation.
That one thing is my list of 13 Foolish New Year's Resolutions.
I hope 2024 is a wonderful year for you, and for us all.
Happy New Year!
13 Foolish New Year's Resolutions
1. I will live below my means — spending less than I earn.
2. I will save money into a rainy-day fund so I'm ready for what life might bring.
3. I will pay off my credit card debt, and then only spend what I can pay off within the interest free period each month.
4. I will regularly add to my investment account.
5. I will invest money I don't need for at least 3-5 years to build my nest egg.
6. I will learn more about investing, taking control of my financial future.
7. I will invest in quality businesses, remembering that I'm buying a slice of the company, not just a code on a screen.
8. I will buy shares in a company with the intention of holding them for the long term.
9. I will sell when my investment thesis fails, the company is overvalued or I have a better idea.
10. I will avoid anchoring my decisions to the price I paid for my shares.
11. I will remember that the market can be moody and over-react, both on the upside and the downside.
12. I will expect volatility, and I won't let it spook me into selling. Indeed, volatility can offer me great opportunities!
13. I will let the market offer me prices (be my servant), not dictate my mood or actions (be my master).
(Want a printable version? I'm glad you asked. Here it is!)
Fool on!
