A Few Lessons Learned
Investing is hard.
Growth cannot last forever.
Survival is the most important thing in the markets.
Risk management is most important when everything looks untouchable.
It is very difficult to hedge against inflation – gold, stocks, bonds or cash, all of them can see their values falling at the same time.
Diversification across asset classes is the best way to protect against bear markets.
Rising interest rates affect all the segments of the economy.
Investing is mostly a game of psychology.
There is no investment which is risk-free, not even cash.
If someone sounds too confident in giving advice, run away from him.
Things change more quickly than you can expect.
Inflation hits everyone.
Nobody knows where the market is going.
We could be in a recession already.
Don’t chase past performance.
Too much leverage can kill you financially.
Don’t listen to forecasts, they are just stories.
Don’t spend money to show-off.
There will always be something to worry about, but only worry about things that you can control.
The biggest risk is which you are not expecting.
As Keynes said: Change your mind when the facts change.
Cash is king in times of distress.