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From escaping the bear, to the shock drop of bonds, here's what we can learn from 2022

By Sam Instone - December 13, 2022

Money is one of many hot topics over the festive period...

As families come together and inevitably reflect on the year they've had.

Now, there's no denying 2022 has been somewhat chaotic for investors...

But lessons can always be learned.

Here are five.

Perhaps you'll come up with more?

1. Time is everything

It defines everything, from our risk tolerance and needs or goals, to our perspective.

For a younger investor, a bear market might be celebrated. After all, stocks are on sale and it's a better entry point.

For a retiree in the drawdown stage, it means something entirely different.

Every single discussion about investing should start with two questions: “How long do I want to invest this money for?” and “What is the purpose of this money?” 

2. There's no escaping the Bear

I’m 45 years old and this is the seventh bear market in my adult life.

They happen, perhaps more than we realise or remember. 

I'd say you can expect two bear markets every decade for the rest of your life.

You have to survive them to reap the benefits of bull markets. 

3. “Cash is the oxygen of freedom” – Morgan Housel

Investors who are sleeping well this year had cash to get them through.

Even if stocks are rising you need to maintain a cash reserve—and it should be untouchable.


Because things change quickly

4. Stocks and bonds can go down at the same time

For decades the place to hide out when stocks fell, was in bonds.

But after this year, investors with bond-centric portfolios are likely feeling fragile.

It was very rare for stocks and bonds to lose money in the same year.

But in 2022, they both went down together.

Just because something rarely happens, doesn’t mean it can't

5. This will never be easy - we're human

The decade ending 2022 was an incredible time to grow and compound wealth.

Yet investors are miserable because a bad 10 months feels worse than a good 10 years.

Invest for a long time, and the markets will reward you.

The longer the better.

But this isn't easy. 

Greed and fear are timeless. 

What have you learned in 2022? 

If you're looking for some help along your financial journey in 2023, we'd love to help

In the meantime, read how you can improve your odds of success, by downloading our free guide below. 

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