6 Lessons I Learned In 2017

The end of every calendar year brings about a sense of accomplishment from both a personal and professional standpoint. It’s also a wonderful time to reflect on lessons that were learned or re-enforced over the course of the preceding twelve months. I have made this somewhat of an annual tradition and believe wholeheartedly that this process makes me a better investor, advisor, and writer. 

1. Volatility can stay lower for longer than you expect. There is a well-known adage that markets can stay irrational longer than you can stay solvent. I’ll amend that to include volatility as well.It can sure stay subdued for much longer than many people believe possible (me included).

2017 was filled with healthy doses of political turmoil, social unrest, and other polarizing issues of our times. This didn’t deter the stock market for more than a couple of percent on the downside and the bias continued to point towards new highs. It’s rare we see a year of such subdued volatility, but it’s also a wonderful reminder that just because you “expect a correction” doesn’t mean you will get one.

2. The stock market does not care about your politics. This one was a hard lesson for many to experience this year. There are scores of investors that were convinced the ushering in of a new President and political party alliances would create havoc throughout the global stock and bond markets.

The reality was the exact opposite. Market prices rose across the world as continued optimism for business expansion and trade took hold. The counterintuitive nature of this psychology never ceases to amaze me.

It bears repeating here once more: keep politics out of your investment portfolio.It rarely turns out the way you instinctively believe it should.

3. New investment crazes offer profound insight. 2017 was truly a breakout year for crypto currencies like Bitcoin, Litecoin, and Ethereum.Not only did these alternative assets put up quadruple digit performance gains, but they also captured headlines and attention around the world.