Listed here are a few of my favourite posts from 2022. It was a busy 12 months with my younger children so I didn’t write as a lot as I had hoped, however one in every of my targets is to begin writing much more this 12 months. I’ve missed it. In any case, right here’s a few of my favorites from this 12 months. I hope 2023 is a good one for you.
1) What to do When the Market feels Crashy?
This submit was written virtually a 12 months in the past because the bear market was beginning. It touches on some essential classes to recollect about bear markets and the way to higher navigate them. It’s much more related at this time than it was then.
2) A Cautionary Notice About Dwelling Costs
I’d go into home flipping. I used to be bearish housing earlier than the 2008 housing crash, turned bullish in 2012 after which wrote this cautionary piece on housing in April 2022, which seems to be like the height in home costs. Simply kidding. I’m by no means constructing one other home in my life.
3) Three Investing Classes from the Russian Inventory Market Collapse
Bear in mind when the Russian inventory market cratered final March? Yeah, me neither. It looks like a lifetime in the past. There are some essential classes in there about house bias and diversification. Everybody says “oh, the USA is completely different”. And I’m inclined to imagine that additionally, however I don’t need to check that idea. You shouldn’t both.
4) Some Nice Arithmetic Behind Falling Costs
Bonds had been down 13% in 2022. Not good. I used to be shocked by the aggressive posturing of the Fed, however there’s excellent news in falling costs – these larger yields are good for bonds, particularly because the Fed reaches the top of their price hikes. Lots of people are going to desert bonds after a 12 months like this, however that’s precisely the fallacious factor to do as a result of their falling costs really make them extra enticing, not much less.
5) Your Balanced Index Nonetheless Isn’t Balanced
I’m clearly an enormous fan of diversified indexing. However I additionally know that indexing requires a sure stage of exercise. In reality, the underlying market caps of shares and bonds at all times change. So it’s at all times bothered me how index funds are principally static weights. That is senseless. There isn’t even an index fund that tracks the precise altering relative market caps. Which is loopy as a result of that’s the one portfolio that may be actually “passive” within the sense that it’s the precise market portfolio. Anyhow, I wrote some stuff about that.
6) The Financial Downside with LIV Golf
A bit off matter, however as a horrible golfer and occasional fan I felt the necessity to write about this one. This submit was particularly fascinating because it touches on the abuse of presidency spending and the way it can damage an excellent factor.
This white paper took up a giant chunk of my 12 months. I thinks it’s some of the essential issues I’ve ever written and I take into account the formalized implementation of the idea to be very sensible and helpful for on a regular basis traders. I’ve began implementing all my portfolios this manner and all my private cash is invested utilizing the identical idea.
Not a submit, however this new video sequence has been among the most pleasurable stuff I’ve began engaged on. I do know that lots of people favor the writing, however the movies enable me to succinctly archive academic materials in a extra helpful method. I’m actually having fun with it and I hope you might be too.