12 Lessons The Market Taught in 2023: Insights for Navigating 2024

Learning Objectives

• To discuss that no one is very good at consistently getting market forecasts right, leading to the importance of avoiding paying attention to forecasts and instead adhering to your plan.
• To comprehend why valuations cannot be reliably used for timing markets and the potential pitfalls of relying on them.
• To recognize that all risk assets undergo long periods of poor performance, emphasizing the need for patience and discipline to stay the course and adhere to your plan.
• To grasp the concept that assets experiencing poor performance have "self-healing" mechanisms, helping you avoid falling prey to recency bias and maintain the discipline to stay the course.
• To explain that even with a clear crystal ball regarding events, markets remain unpredictable, underlining the uncertainty inherent in investment decisions.
• To realize that allowing politics to influence investment decisions often leads to poor outcomes, highlighting the importance of focusing on long-term strategies.
• To discuss that most returns are earned over very short periods, challenging the notion of short-term market predictions.
• To appreciate that last year's top-performing asset classes are just as likely to be this year's underperformers, cautioning against chasing recent performance.
• To recognize that great innovations are not always great investments, encouraging a discerning approach to investment decisions.

Course Description

This course is valid up to December 31st, 2024 for CFP Professionals. It is advisable to complete this course before that to process the credit on time.

Every year, the markets teach investors valuable lessons about successful investment strategies. Frequently, markets revisit and reinforce these lessons from previous years, acting like remedial courses. This is why one of my favorite sayings is that there's nothing truly new in investing; it's all about the investment history you may not be aware of. 

In 2023, investors were handed 12 crucial lessons, many of them echoing insights from the past. Sadly, numerous investors miss the opportunity to learn from these lessons, continually repeating the same mistakes. This CPE Finance Webinar will meticulously dissect each of the 12 lessons, providing historical evidence and behavioral insights that contributed to these mistakes. Armed with this knowledge, investors can steer clear of such errors in the future.

The information shared in this webinar will arm you with the wisdom needed to avoid the behavioral pitfalls that often derail investment plans. If you find data or unfamiliar terms overwhelming, fear not. I've put significant effort into explaining concepts in the simplest terms possible. 

Major Topics Covered:

• Valuations cannot be used to time markets
• One cannot judge a performance in any given field by the results but by the cost of the alternative
• Assets with poor performance have self-healing mechanisms
• Even with a clear crystal ball, markets are unpredictable
• Don't let politics influence investment decisions
• Most returns are earned over a short period
• Active management is a loser's game in bull or bear markets

Join this CPE Course that will help you take significant steps toward becoming a more informed and adept investor.

Overview

• No one is very good at consistently getting the market forecasts right.

  3 mins
• Valuations cannot be used to time markets

  12 mins
• It takes lots of patience and discipline to stay the course through periods of poor performance, as all risk assets go through them.

  18 mins
• Assets with poor performance have self-healing mechanisms.

  29 mins
• Most returns are earned over short periods

  40 mins
• Great innovations are not always great investments

  50 mins