{"id":57079,"date":"2025-09-23T04:10:20","date_gmt":"2025-09-23T04:10:20","guid":{"rendered":"https:\/\/prosfunds.com\/?p=57079"},"modified":"2025-09-23T04:10:22","modified_gmt":"2025-09-23T04:10:22","slug":"principles-for-a-successful-financial-year","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=57079","title":{"rendered":"Principles For A Successful Financial Year"},"content":{"rendered":"
\n

It\u2019s the High Holiday season for Jews around the world, a time of prayer, repentance, family, and introspection. While each of these themes holds deep significance, I find that introspection is especially foundational in setting the stage for a successful future. This applies to all facets of life, including one\u2019s finances.<\/p>\n

As I reflect on the Jewish year 5785, which concludes at sunset on September 22, 2025, with the onset of Rosh Hashanah, there were some nerve-wracking moments. The markets and the broader economy have faced some turmoil. This year included \u201cLiberation Day,\u201d when President Trump imposed reciprocal tariffs on nations around the world, triggering a sharp market downturn. We\u2019ve also seen ongoing and emerging geopolitical tensions in both Europe and the Middle East.<\/p>\n

On the other hand, Artificial Intelligence (AI) has emerged as an exciting investment theme, helping to propel markets upward and reshape industries.<\/p>\n

I\u2019ve come to appreciate that, no matter the headlines, there are several timeless investment principles every investor should understand. Familiarity with these concepts can help position us for a year of financial clarity and success.<\/p>\n

Principle #1: The Unpredictability of the Markets: <\/strong>As recent financial headlines show, the market can plummet one day following the announcement of tariffs and then skyrocket the next. International stocks, which have underperformed for years, are currently up double digits as of this writing.<\/p>\n

The takeaway? Nobody, not even seasoned Wall Street strategists, can reliably predict what will happen year to year. And that\u2019s okay. If we could foresee the future, investing would be far simpler.<\/p>\n

The key to navigating this unpredictability is avoiding the trap of putting all your eggs in one basket. This strategy is known as diversification. By spreading your investments across a range of asset classes and geographies, you reduce concentration risk and position yourself to weather whatever storms may come.<\/p>\n

Principle #2: Don\u2019t Try to Time the Market: <\/strong>Given the constant fluctuations in stock prices, it\u2019s tempting for investors to try to time their entry and exit or to chase the latest hot investment. But this strategy simply doesn\u2019t work.<\/p>\n

Putnam Investments published a compelling study a few years ago illustrating the pitfalls of market timing. They analyzed the 15-year period from December 31, 2006, to December 31, 2021, and found:<\/p>\n