1. You’ve contemplated buying Bitcoin in the last 7 days.
2. You keep telling yourself, “One more day of gains…and then I’ll quit.”
3. The swipe to refresh stock prices no longer works on your trading app.
4. You know someone who lived through the Great Depression and just doubled down on Amazon.
5. Every time North Korea launches a missile, you see it as a “Buy” signal.
6. You can’t seem to get this David Bowie song out of your head…but with a few edits.
FameFANG makes a man take things over,
FameFANG lets him loose, hard to swallow,
FameFANG puts you there where things are hollow,
FameFANG, it’s not your brain, it’s just the flame
7. You’ve convinced yourself that it is your investment policies that make the market continually rise.
8. This is you leaving the office after market close…
9. Your Tesla and your Portfolio have something in common…they both drive themselves.
10. You recently reassessed your forward-looking market assumptions and decided that 20% is the new 4%.
But remember, the good times can’t last forever and while you might be feeling invincible now, don’t get lulled into a false sense of security. The outsized gains from the markets, along with our temporal distance from the pain felt during the last crisis, have made it increasingly difficult to stay invested in risk-mitigating strategies. However, taking proactive steps in an effort to increase diversification and manage drawdown risk, without sacrificing returns, can help you manage gains and losses and possibly emerge protected over the long run.
Read more about The Dangers of Investing Complacency >