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Moderate Mindset for 2022

Observant1
edited January 2022 in Other Investing
The author's recommendations for the coming year resonate with me.

"Looking back over the past two years, one word comes to mind: extreme.
It’s been a period of extremes in the market and the economy.
Many have benefitted, but we’ve also seen excesses that aren’t necessarily healthy—from the rise in NFTs to the craze in SPACs to the boom in day trading.
That’s why, as you look ahead to the coming year, the theme I recommend is moderation."

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Comments

  • Sven
    Good article. Being patient helped to navigate through the extremes of fear and greed. Now it is a good time to reflect and make the adjustment to face a new year (and challenges).
  • hank
    edited January 2022
    Yes - I’m beginning to feel completely out of touch today - a dinosaur from the mid 20th century. There were predictable business cycles than. Booms and busts. “The Fed” was revered for maintaining a tight grip on the “punch bowl” and we investors dreaded their every move. Bonds provided safety, income and (above all else) stability and commanded our respect. Junk was junk. Few wanted it. And we “dipped” in a small smelt stream every spring. It was a time when conversation centered around P/E ratios, risk analysis and expectant time horizons measured in decades. And, every so often something called a “market correction” occurred.

    You got your fund prices from the newspaper. We were absent SPACs, crypto, meme stocks. “Day trading” by moms, pops and teens wasn’t yet in vogue. A manager predicting 40% annual returns for his / her fund would have been branded a “charlatan” - spurned by all but an insane few. Traders clad in suits and ties on Wall Street moved the financial levers. Made the decisions. Not impersonal computers stuffed with A/I and somebody’s “proprietary” algorithms. It’s getting harder and harder to loose money in the markets today - though I guess a few still manage to.
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