Welcome to 2024. This is the time of year investors take time to reflect and look for perspective and forecasts. We aim to offer some broad context on principles that are timeless.
 

1. Most people want a better life, so they wake up each day and adapt and innovate to solve what seem like impossible challenges. Companies and economies are a collection of these people so they adapt and innovate as well when confronted with the seemingly impossible and unsolvable, and that is why being a long-term optimist is the only rational behaviour.
    
2. Someone is always looking to make money by scaring you with a “crisis de jour” and as people are drawn to pessimism more than optimism the media is happy to feed us predominantly negative news.
    
3. Always remember, “this too shall pass”, and it always has.
    
4. People are human so they are subject to fear and greed, and that is why bubbles and large selloffs happen and will continue to do so. Therefore, when it comes to investing, behaviour matters more than anything else. Stick to your long range plan.
    
5. No amount of money will make you secure. Peace of mind does not and cannot come from money. 
    
6. Forecasts are a waste of time – look up financial media reports from 2010 if you doubt that. The biggest thing we get from forecasts is a form of perceived certainty and that’s why investors love forecasts, they reaffirm our current convictions about the future despite the fact that more often than not they turn out to be wrong.
    
7. Risk is what’s left after you think you have all the risks covered.
    
8. Cash on hand is your best protection against the unexpected risks in your life. Cash makes you resilient and helps keep you unfazed during market and economic uncertainty. It is your umbrella for sudden bad weather.
    
9. Your best investment in life is your relationships. No one ever talks about your money when you pass away, they talk about the kind of person you were.
    
10. Spending less than you make is the key to financial peace of mind. Advertisers want you to spend your money on stuff, suggesting that it will give you peace and happiness. Ignore them instead and live your life as we all know stuff ends up in the landfill and the short-term high fades quickly.

We wish you a healthy and happy 2024.

Randy and Ian