What caught my eye this week.
I have used more than one of these Friday missives recently to talk about the shakier corners of the market.
But this week saw even the giant US bellwethers take enough of a beating for ardent indexers to notice.
Rather than listen to my pop market psychology again (don’t worry, I’ll be back) I’ve rounded up some other people’s views below.
Please note! If you have a plan and you’re happy with it, you’re welcome to skip all this stuff.
Especially if you think focusing on it might derail your sensible strategy.
Similarly if the volatility is getting to you emotionally, there’s no shame in taking a timeout, either.
Markets will be markets, regardless of whether you and I pay attention.
And whether they crash or soar, what looked terrible on a stomach-churning day like last Monday won’t be visible on an index graph in a year.
Am I bovvered?
Perhaps a good rule-of-thumb is to match the interest you give to these gyrations with the cadence of your investing activity.
If you invest automatically every month, I wouldn’t worry about weekly wobbles. If you rebalance once a year, maybe check out until December.
You needn’t suffer the daily turmoil with us masochists for no reason.
As Taleb stressed in Fooled by Randomness, whether stocks are up or down in a day is very nearly a coin-flip – close to 50/50…
…but losing half the time feels far worse.
You want some more? Here’s a selection of nicely-baked takes:
- Jason Zweig: why you should sit out the market mayhem – WSJ
- Four good reasons to sell stocks now – Morningstar
- Is this the end of the go-go years? – A Wealth of Common Sense
- We don’t get to choose when the market drops – The Belle Curve
- Four reasons investors should worry about volatility – Peter Lazaroff
- The big wobble – Banker on FIRE
- Is this a big rotation from growth to value? Sort of – Valididea
- Some reminders for a market crash – A Wealth of Common Sense
Pay off the mortgage or invest: with a new calculator – Monevator
How do zero commission brokers make money? – Monevator
From the archive-ator: Strategies for investing in bear markets – Monevator
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UK property rents rise at fastest-ever pace – Yahoo Finance
Increasing the state pension age has kept more over-65s at work – IFS
Large investors driving up property prices in Europe’s big cities – Guardian
Two men take a corpse into Post Office in attempt to claim dead man’s pension – Guardian
Watchdog says people underpaid state pensions ‘left in the dark’ – Which
Law commission says drivers should not be liable for AI accidents – ThisIsMoney
New list of the individuals who pay the most tax in Britain – Guardian
US tax start-up targeting crypto traders hits unicorn valuation – Decrypt
Electric vehicle sales set to surge in 2022 – Axios
Products and services
Amazon and Barclays’ ‘buy now, pay later’ scheme explained… – Which
…and sector gorrila Klarna also set to launch in UK – Guardian
Open an account with InvestEngine via our link and get £25 when you invest £100 (T&Cs apply) – InvestEngine
Nationwide finally ups the rates on some savings deals – ThisIsMoney
Common mistakes that can invalidate your boiler warranty – Which
Homes for sale in historic ports, in pictures – Guardian
Comment and opinion
Will the UK’s 20-year housing bubble ever end? – UK Dividend Stocks
The plight of first-time buyers [Search result] – FT
Project Mickey – Humble Dollar
Robinhood, Reddit, and the revolution that wasn’t [Podcast] – Bogleheads
17 ways to save money on your household bills in 2022 – Which
Are you really getting rewarded without any extra risk? – Fortunes & Frictions
Jack Bogle at the Woodstock of capitalism – The Evidence-based Investor
Personal finance in nine diagrams – Mr Stingy
Rationalization – Indeedably
Is it okay to subsidize spendypants adult children? – Mr Money Mustache
Time is money mini-special
The opportunity cost of everything – Young Money
Everything must be paid for twice – Raptitude
Saving $575 for a moment of discomfort – Get Rich Slowly
Crypt o’ crypto
You don’t need a Bitcoin ETF when Coinbase tracks so closely – Josh Brown
Andy Warhol, Clay Christensen, and Vitalik Buterin walk into a bar – Tim O’Reilly
What Nicholas Taleb got right and wrong about Bitcoin – Bloomberg
Why are celebrities promoting dubious cryptocurrencies? – Slate
Naughty corner: Active antics
Current conditions: the cyclone beneath the surface [Podcast] – ILTB
Great look into German family HoldCo JAB – Neckar’s Insecurity Analysis
Expectations investing: Q&A with Michael Mauboussin – Motley Fool US
The market’s in freefall: what should I do? – Fire V London
Two stocks that ended one man’s stockpicking antics – Humble Dollar
The US Fed is over-egging rate expectations [Agreed, FWIW] – The Bellows
Why active managers are sitting pretty despite outflows – Investment News
Omicron’s fall has slowed. Should we worry? – BBC
Kindle book bargains
How to Build a Memory Palace: Books 1&2 by Sjur Midttun – £0.99 on Kindle
Scrum: The Art of Doing Twice the Work in Half the Time by Jeff Sutherland – £0.99 on Kindle
The 5AM Club: Own Your Morning by Robin Sharma – £0.99 on Kindle
Grit: The Power of Passion and Perseverance by Angela Duckworth – £0.99 on Kindle
These turtles fly south for the winter – Hakai
The [non-] impact of impact investing [Research PDF, from late 2021] – SSRN
Off our beat
Causalities of your own success – Morgan Housel
On the insanity of being a scrabble enthusiast – LitHub
The secret life of a super-recognizer – Guardian
Fight Club gets a new ending in China, and the authorities win – Guardian
Why is Ukraine such an economic failure? – Noahopinion
Dreams and kindness are all we have – Interfluidity
“Thanks to auto enrollment pensions most of us are shareholders – part owners of the corporate world. That common ownership people say they crave? We already have it.”
– Merryn Somerset Webb, Share Power
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