The Cycle of Market Emotions

Lessons the Market Taught Us in 2008

I came across an excellent article from Larry Swedroe on lessons taught by financial markets in 2008

Here is an excerpt

The key to successful investing is to get the plan right in the first place, and then stick to it. That means acting like the lowly postage stamp that does one thing, but does it well—sticking to its letter until it reaches its destination. Your job is to stick to your well-developed plan until you reach your financial goal. And, if you don’t have a plan, write one immediately. And make sure the plan includes the aforementioned Plan B—the actions you are prepared to take if the “unexpected” does happen.

In short, this article says that

• Trust no one but yourself when it comes to money
  
• Active money managment is loosers game
  
• Don't invest in what you don't understand
  
• Nobody can predict future
  
• Invest for the long term