Every year, there are plenty of experts making predictions about the following year. But there’s plenty that can’t be predicted, such as a global pandemic that made many of the projections useless. And few forecasts for 2021 incorporated the kind of inflation this year has witnessed.

Supply chain woes are certainly a factor, as well. They are a big force moving inflation much higher than the Fed’s targeted two percent. And it could continue well into 2022, making it much harder for predictions to be accurate.

Have you considered that it’s possible the best investment advice you could receive is rooted not in the events of the past few months or even years, but principles that have shown to be capable of weathering many market circumstances over the years?

No matter how short-term situations serve to increase inflation, influence rates or bolster equities, the market overall tends to grow over time. While recent growth has been particularly strong, long-term, the market tends to average around 10% growth.

In addition, it’s not a great idea to allow your investment strategy to simply blow with the wind, buying and selling according to which stocks are being mentioned in the news or seem flashier than others. Instead, examine investment opportunities to see if they show strong management, are undervalued and deploy capital wisely. These companies will typically have little or no debt and could have a clear competitive advantage.

When you employ the investment advice of Lawson Kroeker, you are working with an independent firm. This means we can consider what investments make sense for the longer term, rather than for the next reporting period. Contact us to learn more.