the know-nothing investor

My personal life is in the same point that it was when I wrote “Living by Repetitive Patterns”. I guess I’m at the bottom of a no free time life cycle and soon I’ll be able to write more often about my learning curve as a know-nothing investor.

Back in July, I was so glad that I handled perfectly that market correction, but it it’s funny how markets are so unpredictable and now, in the beginning of October, we still are in the same market correction, or in a bear market or even in crash mode. You can name it whatever you want. It doesn’t matter for multi-asset portfolio strategy. We don’t have to expect anything from markets and always remember they don’t own us nothing. Therefore embrace the pain of watching your rate of return down the drain and take it like a man. Although no harm is done if we shed some tears in the process.

A 20% drawdown isn’t very pleasant to suffer, but when we have a strategy that have been working since last century we can put it in perspective and stay calm.

This means I should stay arms crossed doing nothing? Doing nothing is better then do it wrong. So I’ll wait patiently for markets to calm down and they will, they always do. Even after a major economic crisis or war they always get back on their feet. This time will be no different.

Meanwhile, I’m trying to save more money to buy equities ETFs on a discount. I’m very fond of discounts and because I failed the big one, back in 2009, I’ve been trying to catch these small corrections to do some dollar-cost averaging.

PS – I took so long to write this post that equity markets are showing some upside reversal signs, although back in July I thought the same. But it doesn’t matter my strategy is a broader one, where markets erratic movements in short time periods are meaningless.  Like my investments my blog is aiming for long run.