All things must pass
I really like the popular version of memento mori.
It claims the saying comes from ancient Rome, where victorious generals would be granted the right for a victory parade, and there, at the very moment of their complete triumph they would employ a slave to stand behind them and whisper ‘memento mori‘ in their ear.
Memento mori is latin for ‘remember you will die’.
The idea was to not let success get to their heads. It’s a kind of stoicism.
Sadly it turns out this probably wasn’t a Roman practice, but rather a medieval Christian idea. Good story though.
2017 has been a great year for investors. US stock market is up around 15%, Japan is up 20%, emerging markets are up 30%. Bitcoin and cryptocurrencies rose exponentially. It’s very easy to get a bit cocky.
People who have been investing for longer probably remember previous crashes. I’ve never seen my net worth evaporate, so it will be interesting to see how I feel during the next dip, or the next crash. There will be one at some point.
Are you ready? Perhaps it might be time to start thinking about staying rich?
The investor’s version of memento mori right now might be ‘remember you are not an investing genius’. Under current conditions, any idiot could have made money this year.
The difficult thing will be holding onto it in the future.
How about you? How did you do in 2017? Are you planning to make any changes next year?
My investments did very well this year. As you say, it was a good year for investing. Next year I want to concentrate on reducing spending and perhaps earning more. I get the feeling that the next 10 years are so are going to be very important for me financially and that I can’t afford to let my money drip away when those small amounts could make all the difference in the future
Every man and his dog is talking about how easy they made money on say cryptos. Its dotcom bubble 2.0. Best to follow the teachings of his site and have the sensible stuff taken care of. History repeats itself.
Be warned.
I bought a pretty big amount of SDS last month and held it about three weeks (and lost about 2%, which will offset some other gains taken). So I’m not very trusting that things will last.
Marketwise, 2018 is now supposedly looking good given the huge corporate tax cut–tho many large companies were already able to avoid paying the highest rates (small caps may benefit more). And interest rates will continue up, which may be good for large banks, and some US companies holding profits overseas will be able to repatriate those.
But I’ve read about Reagan’s first tax cut (I was about 30 at the time, and not at all aware or financially literate). People remember the ’86 tax reform, that’s the one that Reagan gets kudos for. But his first tax cut was a flop–it was supposed to be a stimulus, but the markets didn’t like it (interest rates skyrocketed to 20%, and I had friends at the time taking out student loans so they could buy a MMF and come out ahead), and within about a year Congress (and Reagan) did away with the cuts and re-raised rates. And it was only then that the Reagan recovery began.
Also, the supposed “Reagan” ’86 tax reform bill was sponsored by two democrats–one each in the House and Senate, and the bill was debated and worked on by both sides (IIRC, it passed the Senate 97-0), a far cry from the partisanship today.
So while I’m positive on the first half of 2018, this tax cut could have some unintended surprises/consequences, and both sides will be spinning it one way or the other to gain advantage next November. Maybe it will turn out great, like the ’86 tax reform; or maybe it won’t, like Reagan’s first try. Or, it could be something Mueller announces… Or DPRK… (whoever starts it).
I had some money in the market in ’87, more invested in 2000, and even more in 2008.
As a recent retiree now depending on money saved in the past, the lesson is to be cautious. Tho there were big gains in the months leading up to ’29, I could skip something similar today if I could insure that my present pile of cookies wouldn’t end up any smaller than it is now.
(blah, blah, blah… )
😉