Twenty Lessons Learned

By Michael Batnick of The Irrelevant Investor

As the wheels fall off the market, now is a good time to reflect on some of the timeless lessons we learned during a very specific period in time.

  • Nothing lasts forever. When growth stocks were going up every day, it felt like it would never end. Now that growth stocks are going down, it feels like it will never end. Everything ends, eventually.
  • Survival is the most important thing. Your portfolio must be able to weather euphoria, panic, and malaise.
  • Risk management is most critical when it feels like you’re getting punished for managing risk.
  • Nothing is a perfect inflation hedge. Not gold, stocks, crypto, or cash. Different inflation hedges work in different inflationary regimes. No one size fits all.
  • Diversification is the only answer to an unpredictable future. If everything is working, you’re not really diversified…. read more