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Welcome to 2017. What exciting times we are in to say the least! Mr Trump is sworn in and, as expected, is hitting the headlines.

I personally am really optimistic about the future. Why I and many others believe we are in the best time in history to be alive, will be the basis of my next blog. Stay tuned for that one!

In the meantime, attached is a shortened summary of an economic update for 2017 from Vanguard. Vanguard manages around 1.78 trillion USD and has a gaggle of economists and investment experts, all with PhDs, on the payroll so they should know what they are talking about!

"While inflation-adjusted returns for the next 10 years are likely to be moderately below long-term historical averages, the likelihood of achieving real returns in excess of those since 2000 is higher for all but the most conservative portfolios.” - Qian Wang Senior Economist - Vanguard

Nevertheless, I am reminded of what John Kenneth Galbraith famously said:

"The function of economic forecasting is to make astrology look respectable.”

Hence we must take heed of the expert predictions but to be truly successful, we must focus on those areas which we can control and have been proven to provide investment success:

  • diversification
  • correct asset allocation
  • low-cost strategies
  • reasonable expectations and, above all
  • discipline

Click on the image below to access the article.

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Have a great month.

Cheers,
Ben Law.