Throughout the course of 2023, local financial planners, Holland Hahn & Wills, will be exploring the ways in which people can improve their investment experience through a series of articles.

Katie Lovatt, the firm's head of marketing and operations, today focuses on the risks predictions can pose and why those interested in investing should stay well clear.

When you try to predict market movements, you add unnecessary stress to an already stressful world. Natural instincts aren't always the best when it comes to investing.

Research shows there is no reliable way to predict top performers. Broad diversification helps reduce unnecessary risk, as well as sound, evidence based, long term investments. Focus on what you can control (markets being out of your control!).

Here are 4 key actions to consider:

• Create an investment plan to fit your needs and risk tolerance.
• Structure a long term portfolio based on academic research.
• Diversify globally.
• Stay disciplined through market dips and swings.

When people follow their natural instincts, they tend to apply faulty reasoning to investing.

People sometimes find it hard to separate their emotions from their investment decisions. They can also be influenced by alleged "experts" who claim to understand the market's future movements. This can lead to poor decisions at the worst times, acting on impulse or being swayed by the media frenzy.

We can't know which market segments will outperform from year to year – be wary of anyone who says they can. By holding a globally diversified investment portfolio, investors are well positioned to seek returns wherever they occur, and need not worry about following the successes and failures of a particular stock (thus reducing unnecessary angst).

A financial adviser can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience and doesn't have to cost the earth. An initial chat with Holland Hahn & Wills Financial Planning LLP will cost nothing, and a robust discussion could save you from making costly mistakes, or creating further anxiety about your financial future. We're excited about the future – a new year, new opportunities. Adventures, challenges and fun abound in 2023 (not a prediction, just fact!).

020 8943 9229 |[email protected] | www.hhw-uk.com

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