3 Financial Resolutions to Make This Year

<p>rewrite news article with same meaning and sentiments: A new year signifies a fresh start and while most New Year's resolutions might seem cliche, they can be incredibly beneficial when it comes to financial matters. With the dawn of a new year comes a range of threats and opportunities, especially as we move on from last year’s unpredictable market. Hence, here are three key “resolutions” that could prove crucial as we cautiously step into 2024…</p><p>Resolution No. 1: Prudently Allocate Your Assets<br /> Reflect on the huge losses incurred by some Enron employees in the early 2000s, who were persuaded to invest the majority, if not all, of their 401(K) retirement savings into Enron stock. A lack of intelligent asset allocation led to these financial disasters. Enron was highly esteemed by Wall Street in the late 1990s and was regarded as an innovative giant globally. Sadly, it was an elaborate corporate fraud leading to complete loss for employees who invested heavily into it.</p><p>Allocating a large portion of your wealth to a single asset class - whether stocks, bonds, oil, gold, real estate or any other, leaves you financially vulnerable and prone to severe losses.</p><p>Resolution No. 2: Learn to Say “No”<br /> Successful market operators are disciplined and understand the importance of declining bad risks till a good risk surfaces. Bad or “asymmetrical” risks are marginal opportunities where the downside potential significantly outweighs the upside. Disciplined investors are cognizant of the pitfalls of these risks. They start by asking, “what could go wrong?” rather than “what could go right?” They understand investing is optional and to be selective.</p><p>Avoid succumbing to impatience and saying “yes” to bad risks. Remember, investing is not a race; there's no prize for speed. More important is to avoid pitfalls and protect your capital.</p><p>Resolution No. 3: Be Patient<br /> Most successful investments need time to demonstrate their true worth. This is best illustrated by Berkshire Hathaway, the conglomerate that made Warren Buffet a billionaire. If you had purchased its stock thirty-six years ago when Bloomberg’s documentation began and held the stock till now, you would have endured numerous losses. However, Berkshire Hathaway was able to produce an astonishing return of over 18,000% over thirty-six years, outperforming the S&P 500 Index by more than four times.</p><p>Investment success stories like these emphasize the importance of patience and a long-term investment horizon. Without patience, a potentially lucrative business might never return significant stock market gains. Some things are truly worth the wait.</p><p>Unearthing remarkable stocks primed for investment doesn’t require an eternity though. Currently, I am working on my Power Trends Forecast for 2024. This report, which will highlight the most promising "Big Picture" opportunities, is designed to deliver remarkable rewards across all market environments.</p><p>This annual forecast will be made available to readers of my Investment Report research service first, as early as Friday, January 12. If you wish to be at the front of the line to identify which megatrends could power substantial gains in 2024… click here to learn how to become a member.</p><p>Kind regards,<br /> Eric</p>