- Predictions, while fun to read, should not dictate your life and investment choices
- As we have seen with the past two years, no one knows what we could be in for in 2022
- Life changes and so should your planning. Advanced planning is not a one and done endeavor.
As I have grown up, I’ve noticed, in various groups of friends, there is usually one person who is truly funny. While we all may have our moments with a witty one liner, these individuals seem to always know what to say and more importantly know how to say it. Unfortunately, for me, I was not blessed with this gift, but it does not stop me from trying to capture a few funny moments. Several years ago, I was even going to sign up for an open mic night, but that is a story for another time.
Now, the reason I bring up comedy is with the new year upon us, economists are actively out promoting their 2022 economic outlooks. As a matter of fact, if you Google ‘2022 Economic Outlook’ you get 243,000,000 results in less than a second. Anyone can put out an outlook and for most of these individuals, whether their outlook is right or wrong, it has no significant effect on their own lives. One year from now they can look back, say they got some things right and got some things wrong. On a very basic level, there are no repercussions for them for being right or wrong. Thus, it can be somewhat comical reading the various outlooks.
One website which gives a visual representation of data is Visual Capitalist. The bingo card below was created after analyzing over 300 articles, whitepapers, podcasts, and interviews to create a big-picture look at what experts predict for the coming year.
As you can see, interest rates and inflation received the most predictions.
Just for fun, the Bingo Card for 2021 is below.
Again, some of the 2021 predictions were pretty good, while others are still to be determined.
No one knows what is going to happen politically, economically, or socially over the next days, months, and year, yet all of us do have the ability to plan. Plan for both the expected and unexpected.
Just this week I spoke with clients who want to sell their business, one who is pregnant and another who is having surgery at the end of the month. All these events can influence what we have worked on with these clients. There will be some small changes to be made, which could potentially affect long-term results, but these changes were made for a reason. If there is anything that has been constant, it is life changes, and we need to be flexible enough to deal with these changes. Granted there are instances where we get no warning of changes, changes which could have dramatic effects on our lives. It is because of the prior planning that we can make it through these periods successfully.
I wanted to leave with you with a joke.
“An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today.”
Zeches Wealth Management
A Registered Investment Advisor
Edward J. Zeches, Jr., CPA
Christopher P. Zeches, CFP®
2850 N Swan Road, Suite 100
Tucson, AZ 85712
4647 N. 32nd Street, Suite 110
Phoenix, AZ 85018