Da Dip

When I dip, you dip, we dip

The market took a big dive yesterday, likely as a result of the Fed raising interest rates. People get skittish and they freak out. Luckily our portfolio isn't just a mirror of the S&P 500, since we've tried to really stay diverse. We may have gone a little too heavy on international markets because that was a safer bet at the time for us. An interesting thing to look for is if the domestic market does experience a downturn, will that mean we'll see an uptick in international stuff or just see our diverse portfolio save us a bit.

Another relevant concern is we should try to think about whether or not we are diversified in a way that makes sense. A good chunk of our profit has come from dividends, but is that a problem? Many investors probably earned most of their profit from growth. Our theory at the outset was to be super safe and try and be able to make some gains despite what is going on in the market. So in a way, our plan worked. We could have made more money if we tried a different approach, but that's some crystal ball stuff. 

As part of our diversification strategy, we tried to not have too great a percentage of our portfolio in any one investment. Since we have purchased lost of ETFs, did we end up with higher exposure in any one thing?

As an aside, there's an interesting investment theory that you put 90% of your portfolio in super safe stuff and then 10% in some crazy-bananas stuff. It sounds like a safe way to be reckless. The caveat here is that you are likely going to lose out, and you really need to closely monitor that part. But it might be worth pursuing. So who wants to short some Bitcoin?


Next time we should talk about house stuff and leverage.

Profit