Hi ADIFI, well done for remaining accountable in this journey. I wanted to ask you about your lessons learned. They all seem valid, but also very micro-focused.
Given the macro sledgehammer being taken to the market at present, are there not lessons there also i.e. like just as you couldn't really lose in late 2020, you'd struggle to pick any spec-tech winners in January 2022 regardless of all the tips and tricks in the book?
Secondly, any considerations re: the whole active/passive debate at large? Assuming you still feel you have an edge (?), is this horrendous volatility suitable for your goals?
I think you are largely correct about the effect of macro factors. There is much to learn there too. I think I wouldn't be particularly successful at attempting to be a primarily macro driven investor, but it's not right to ignore the context
Markets always overshoot in both directions
2020 was rridiculous. Late 2021 to early 2022 super ugly.
The volatility is unpleasant but my portfolio doesn't really affect my day to day life at the moment, so i can tolerate it with the promise of a brighter future.
In terms of active vs passive it just depends on how you are wired. I've always said that i felt most people should index.
If i wanted to smooth out the volatility I'd have a larger index contribution for sure
With my NHS pension taking care of long term income stability requirements I'm ok with barbelling.
My "edge (if I have one) is largely psychological - i genuinely am not overly stressed by the carnage going on in my portfolio - now that the loan is gone and I've got lots taking place in my work life, it is easier to stay long term focused.
Had i sold up a year ago I'd have more money in the bank. But this whole process is a learning journey and my only promise is to document iit honestlyi ncluding the ups and downs.
Great to hear from you again at length. Wishing you and your family best of wishes with the potential career change.
P.S this part "That is the power of ̶l̶e̶v̶e̶r̶a̶g̶e̶ perspective, and I’m grateful for where I am despite the setbacks." made me LOL.
Thanks for putting it out there and sharing your story.
Conor
Thanks Conor - always appreciate hearing from you, and glad to make you chuckle.
Feels like there's a lot up in the air, but it feels exciting.
Happy New year!
Hi ADIFI, well done for remaining accountable in this journey. I wanted to ask you about your lessons learned. They all seem valid, but also very micro-focused.
Given the macro sledgehammer being taken to the market at present, are there not lessons there also i.e. like just as you couldn't really lose in late 2020, you'd struggle to pick any spec-tech winners in January 2022 regardless of all the tips and tricks in the book?
Secondly, any considerations re: the whole active/passive debate at large? Assuming you still feel you have an edge (?), is this horrendous volatility suitable for your goals?
Hi there
Great Q
I think you are largely correct about the effect of macro factors. There is much to learn there too. I think I wouldn't be particularly successful at attempting to be a primarily macro driven investor, but it's not right to ignore the context
Markets always overshoot in both directions
2020 was rridiculous. Late 2021 to early 2022 super ugly.
The volatility is unpleasant but my portfolio doesn't really affect my day to day life at the moment, so i can tolerate it with the promise of a brighter future.
In terms of active vs passive it just depends on how you are wired. I've always said that i felt most people should index.
If i wanted to smooth out the volatility I'd have a larger index contribution for sure
With my NHS pension taking care of long term income stability requirements I'm ok with barbelling.
My "edge (if I have one) is largely psychological - i genuinely am not overly stressed by the carnage going on in my portfolio - now that the loan is gone and I've got lots taking place in my work life, it is easier to stay long term focused.
Had i sold up a year ago I'd have more money in the bank. But this whole process is a learning journey and my only promise is to document iit honestlyi ncluding the ups and downs.
Hope all is well with you - have a great 2022.