As we reflect on recent market performance and plan for the quarters ahead, it’s a good time to revisit timeless investment principles. Rather than chasing predictions or overcomplicating strategies, two key lessons from the past quarter highlight why simplicity and discipline often lead to better outcomes in investing.

1. Work Smarter, Not Harder in Investing

While many areas of life reward effort, investing is unique—doing less can often mean achieving more. Success comes from embracing evidence-based strategies, trusting the power of markets, and committing to long-term goals. Instead of trying to time the market or chase the latest trends, focus on diversification and the factors that drive returns over time: company size, valuation, and profitability.

Compounding is your most powerful ally, requiring only patience and consistency. For example, $1,000 invested in the S&P 500 in 1970 and left untouched would now be worth approximately $300,000 (Booth, 2025). Staying invested through market volatility and focusing on what you can control—like your savings rate and risk tolerance—can reduce stress and help you achieve your financial goals.

2. The Perils of Predictions: Lessons from 2024’s S&P 500 Rally

The market’s unpredictability was on full display in 2024 when the S&P 500 soared by 23.3%, far exceeding its historical average return of 12.3% (Crill and Pincus, 2025). Notably, many analysts had forecasted a negative year for the index. This disparity underscores a crucial lesson: relying on forecasts to guide investment decisions can lead to missed opportunities.

Markets efficiently aggregate countless viewpoints into prices, creating a collective wisdom that’s nearly impossible to beat consistently. For investors, this reinforces the value of sticking to a disciplined, evidence-based approach rather than reacting to short-term predictions or headlines.

Takeaways for the Quarter Ahead

As we move forward, consider reflecting on your own approach: Are you overcomplicating your investments or making decisions based on fear, greed, or market noise? By simplifying your strategy, staying focused on the long term, and tuning out distractions, you can achieve more with less stress.

Remember, successful investing is about balance. By aligning your investment plan with your life goals and trusting in proven principles, you free up time and energy to focus on what matters most: your family, passions, and purpose.

Here’s to a productive and focused quarter ahead! As always, we’re here to help you stay on track and support your journey toward financial success.

-Your PBMares Wealth Management Team

The content above is a summary of recent articles originally authored by:

Booth, D. (2025, January 14). An Investing Plan For This Year: Doing Less Can Lead To More. Dimensional Fund Advisors. https://www.dimensional.com/us-en/insights/an-investing-plan-for-this-year-doing-less-can-lead-to-more

Crill, W., & Pincus, J. (2025, January 17). Prediction Season. Dimensional Fund Advisors. https://www.dimensional.com/us-en/insights/prediction-season

The information contained in this article is for informational purposes only, and cannot be relied upon for legal, financial, tax, or accounting advice. Be sure to consult with your financial advisor on this topic as individual situations may vary. Any specific questions you may have can be sent to us by email and we would be happy to assist you.

About the Author:

Anthony DeTrane PBMares Wealth ManagementAnthony DeTrane
Associate Wealth Advisor

Anthony collaborates with the PBMares tax team to integrate strategies into comprehensive wealth and retirement planning, including tax-efficient withdrawal approaches and optimizing asset allocation across investment portfolios.