A Skeptical Resolution

There is less than a month left before we close the books on 2013, and this year has been a very good one for the bulls. However, one thing I will caution you on is not to expect the same kind of market year in 2014. Sure, the market may keep rolling unabated to another 25% gain in 2014, but the odds and logic just don’t augur well for that outcome.

So, I think one key New Year’s resolution you can make right now is to simply be skeptical

By skeptical, I don’t mean be bearish. Rather, I mean don’t get lulled into a false sense of security that everything is going to be okay, and that your money is going to just keep rising at 2013 rates, which historically is an extremely atypical performance.

Just remember that markets do not go up forever, but they can go up for a long time without a correction or bear market. However, when bear markets do come, they can be swift and violent, and very unforgiving to the ill-prepared investor.

So, be skeptical and be prepared.