Many people view the new year as a time for new opportunities. Most often those opportunities are health related with resolutions to get in shape. What about your finances? Is 2024 the time for you to focus on your financial health? No one really knows what the future holds which makes investing a bit more nerve wracking especially after a somewhat volatile 2023, as noted by autor Maurie Backman in an article entitled Will 2024 Be a Good Year to Invest . If only we had a crystal ball, right? Here are a couple of things to consider when looking at investing in 2024.
Backman suggests that every year can be viewed as a good year to invest when you have the correct attitude and approach. For example, if stock prices fall, you can purchase shares at a discount. If prices rise, your investment will grow over time. Over time is key. Backman suggests that when investing, it’s best to plan to hold on to your investments for many years. If you invest to make quick returns, you might end up disappointed. On average, the market has had solid growth, however, there have been stronger and weaker years. You should plan to hold on to investments and be prepared to ride out the ups and downs.
Diversification is also important. Backman suggests that you purchase stocks in a variety of segments of the market. If you invest in just one area and prices plummet, you will suffer a loss. Perhaps not a big deal if you are focused on long-term investing but it’s important to have some short-term protection in place in case you need cash. Investing in a variety of segments will help spread out your risk.
No one can predict what the market will do in 2024. However, investing is a good option if you diversify and think long-term. With over 20 years of experience as a financial and investment advisor, David would be glad to meet with you to discuss your financial goals. Resolve to improve your financial health in 2024 and give us a call at 540-389-6060 to schedule your appointment.