Home Career A very difficult year – an inappropriate investor

A very difficult year – an inappropriate investor


The market didn’t like what it heard yesterday. I didn’t like anything this year.

The S&P 500 has fallen more than 1% on one of four days so far in 2022. The only other higher performing years since 1990 were 2008, when the S&P fell 38%, and 2002, when it fell 23%.

Mega cap technology stocks have been top performers over the past decade. This tailwind has now reversed. Live by the FAANG, die by the FAANG. With the exception of Apple, the rest of the country is in its deepest decline in a decade.

These six stocks went from 10% of the S&P 500 to ~30% last year. The long-term trend is still there, but it looks like it’s going down.

Buy low, sell high. Be afraid when others are greedy. Etc., etc. It’s easy to be brave when stocks are rising. But putting money on the line when no one else will takes real guts and intestinal fortitude. You’re never going to buy a bottom, and you’ll almost always regret it in the short term, but if you can handle the pain, you’ll usually be rewarded in the long run.

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