It's the time of the year when newspapers and magazines are peppered with financial predictions, tempting us to take action and change our portfolios because, well, it's the New Year.
We would be better to ignore the predictions, because nobody has a crystal ball to tell us what lies ahead and, besides, invariably the shocks that clobber economies and markets often come out of the blue.
A few years ago, none of the January predictions pointed to Greece's fiscal situation being the catalyst for a eurozone crisis. The 2011 predictions didn't include the tsunami in Japan that caused global economic tremors and while the oil price decline is featuring in market predictions, it has been a recent development hardly mentioned in the closing months of last year.
Not only should we ignore market predictions but we should also avoid the temptation to change our investment strategy just because it's that time of the year.
While the New Year is a popular time for people to change jobs or think about moving house, it does not automatically follow that your finances require an overhaul. Chances are your risk tolerance hasn't changed between December and January. Ditto your investment objectives or investing timeframe.