It never feels good to see your investments drop. But it’s also a reminder:
- Make sure you aren’t taking on more risk than you are comfortable with. If you are nervous when markets are down, you have taken on too much risk.
- Having a small percentage in higher risk or speculative investments is OK. As long as you’ll be fine if it goes to zero.
- Always Be Buying. Automate a percentage from every paycheque.
My net worth is down 2.77% in October. But it’s still up 10.12% this year.
I’ll be honest that there’s a lot of uncertainty around global events ie. pointless wars and the increasing possibility of an AI-induced apocalypse. This could be just a blip or the start of a global recession. But that’s all out of my control. But this is how it often goes, it feels overwhelming in the moment but 10 years later you look back and wish you hadn’t wavered. I made those mistakes in 2000 and 2008.
This time, my strategy is unchanged. Live below my means (under 50% of my take home pay) and automated investments into a combination of VEQT, CAGE, CAGX, VDU, XEU.
Stay the course.
— The Pragmatic Millionaire
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