My Biggest Epiphanies in 2022

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I learned a lot in 2022. Here were my biggest epiphanies.

A good investing year

Just like everyone else, my portfolio (consisting of low-cost index funds in a suitable asset allocation) took a hit in 2022. It actually took a double hit, because both stocks and bonds incurred losses.

It was a good year.

How could that be?

As you well know, down markets are the price you pay to receive the rewards of the riskier asset classes when markets recover. No reasonable investor expects positive returns every year, although much of the financial media (but not this publication) conveys exactly that message.

It was a good year for me because I didn’t sell and convert my unrealized losses into realized ones.

I also continued my practice of investing every month in the same funds, in the same asset allocation. I felt like I was buying stocks at a fire sale.

I have no idea if the market will recover next year or the year after, but I like my odds.