Financial markets do what financial markets do. They go up, and they go down. Sometimes they go way up, like in the past decade.

Sometimes way down, like this year. 

My partner did well in a tech company startup, yet he didn’t come from much. As one might expect from such beginnings he held his wealth conservatively. 

Neither of us is gainfully employed, and neither of us needs to be, living our simple comfortable lifestyle. It is not my business how he manages his wealth but living with me you can imagine he hears a bit about money management. One day he announced it was time to put his money to work. 

With his decision I hooked him up with my low-cost manager. You know I use a low-cost manager because I’ve always held that the greatest threats to wealth are taxes and fees, not the market movement. Remember that, not market movement. 

One day in 2022, take your pick it doesn’t matter which as they’ve mostly been bad in the financial markets, he puts his wealth to work. Those very markets quickly carve off 20% of his assets. I’m certain he’s sitting in the corner under a reading lamp thinking he should have kept his money in a checking account.  And he isn’t all wrong. Though he is mostly wrong. 

I know from market history, and personal experience, that markets move with time. Sometimes they move fast and require a breather. Sometimes they move high and have to settle back to a norm. Sometimes investors flee in abject fear and valuations fall steeply. Sometimes markets are late out of the gate and can only find their way up. 

Many years ago I managed my portfolio on a 200-day moving average basis and in 2008 it signaled an imminent financial market downturn. I got out whole. Such a winner. After I managed to bail moments before the 2008 market drop, escaping with everything, I missed the latter stage.  

Failing to get back in, I missed the big upturn. Fully in cash and afraid, certain markets would remain bad I missed much of the best financial market up move in history. By the time I reinvested I had left too many percentages gain on the table. These few years later I’ve realized double-digit returns over several years that made me financially whole. But at what cost? 

Since that experience I don’t play the game. I’m an investor, not a gambler. As is my partner who ignores asset value and focuses on his earnings being reinvested in new shares at on-sale prices. When the markets eventually turn up he will own more shares than he once did, acquired at discount prices. All of which will be revaluing upward bringing him back first to parity and then on to asset appreciation. 

Generally the rule I follow is to buy always, or whenever you can. Time will take care of the rest. 

In 2022 I didn’t flinch. Russia invaded Ukraine, inflation is the highest in generations, and supply chain issues related to COVID-19 have limited the flow of goods. Everything imaginable has hit financial markets at once sending market averages into bear territory. 

Keep in mind my partner invested his wealth pre-Armageddon. Being as he relies on me at least tacitly in the finance department my caution has been and remains, stay the course. You are not selling to eat, or finance a new venture. Leave it alone and let‘s go to the beach. 

Financial markets move. That is what they do. Let them do it. The sun is shining.