Financial expert: Why the annual financial market outlook is a waste of time and how to invest your time better.

Financial expert: Why the annual financial market outlook is a waste of time and how to invest your time better.

According to a report by www.businessinsider.de, asset manager Jan Voss notes that the annual financial market outlook is not of much use. He explains that short-term forecasts are often inaccurate and long-term strategies are more important.

While some investments have remained close to their long-term returns over long-term periods, short-term assumptions are more like reading coffee grounds. No one had predicted the magnitude of the bond market losses in 2022, nor did anyone expect 2023 to be such a good year for the stock market given inflation and wars.

The value of a one-year outlook is doubtful, as either tactical action forecasts are only for a small part of the portfolio or long-term forecasts for entire asset classes, which are ultimately only secondary to strategic asset allocation. This means that even a precise long-term forecast of five to ten years becomes secondary.

So, it is advisable for investors to invest in long-term strategies and rely less on short-term forecasts. The time saved in January can be better used to focus on long-term financial planning.