MyWallSt’s Investing Tips from 2022
Each year that passes brings with it further opportunities to grow as an investor. Some of the greatest lessons are learned through the hardest of times, and it’s safe to say that 2022 certainly qualifies as a hard time for many investors.
Over the course of the year, our team shared some of their best tips for both seasoned and novice investors alike, so we decided to pull some of them together for you here.
Investing with Atomic Habits
Rory starts the year off strong by taking some learnings from James Clear’s New York Times bestseller, ‘Atomic Habits.’ The main argument from this book is that focusing too much on our goals can actually hinder us — something that typically flies against what many of us have been told growing up. Rory adapts Clear’s ‘Four Laws of Behavior Change’ for investors, and it may just change how you approach your portfolio as the new year dawns.
“If you’re reading this, I’m assuming you think of yourself as, or want to be, an investor. However, just buying a stock doesn’t make you an investor, no more than reading one book makes you a reader. I believe being an investor is a lifetime pursuit that involves several small habits being repeated over and over again…”
How Investors Can Combat Tech’s Terrible Year
As we closed out Q1 of 2022, it was becoming abundantly clear that this was no ordinary year for any of us. We were still emerging from an unprecedented pandemic, inflation was rampant, and war in Ukraine following the Russian invasion further fueled global uncertainty. The markets were reacting in kind, with the tech-focused Nasdaq Index faring worst of the three major U.S. indexes.
In this piece, James attempts to break down exactly what happened to some of the world’s biggest tech companies, how investors should manage their portfolios in reaction, and why a long-term outlook is still the best thing to possess in the face of widespread uncertainty.
“To some people, each of these events probably seemed like reason enough to sell up and get out of the market. To others, they represented buying opportunities to capitalize on the growth that always followed.
Looking at the market today, it’s very likely that we’re at least close to the bottom of one of those troughs you see in the chart above. As an investor, the question is — what are you going to do now?”
Your Earnings Season Cheat Sheet
As our analyst team knows all too well, the four earnings seasons throughout the year seem to simply run into each other in a near-neverending slew of results to wade through. These quarterly reports give investors a tremendous insight into how a company is faring, and can often result in large swings as shareholders react to both the good and the bad.
With that in mind, we prepared a “cheat sheet” to help you cut through to the truly important information that you need to take from these calls.
“However, as we have noted before, the requirement for companies to go through the reporting ringer four times per fiscal year is also a negative as it encourages leadership teams to focus on short-term wins rather than long-term success.
Nonetheless, as long-term investors, we should take this opportunity to look at the books of the companies we own (or maybe ones we’re planning to buy) to see how they are executing on their plans…”
How To Survive The Current Bear Market
June saw the last domino fall as the S&P 500 finally succumbed to the unerring pressure and plunged into a bear market. That particular Monday was an absolute bloodbath for the wider market as fear and panic rippled across Wall Street. In this piece, Pádraig took a look at exactly what a bear market meant for investors, the history of bear markets on Wall Street, and exactly how long-term investors should navigate the experience.
“Finally, remember to zoom out and not get overly caught up in the day-to-day sell-offs you may see from stocks you love. The market will always fluctuate, that’s one of the few certainties of Wall Street. Historically, U.S. markets have always rebounded to reach all-time highs, no matter how long it takes. A bear market shouldn’t totally alter your long-term thesis, so hold tight, stick to your convictions, and come out the other side happy you didn’t panic.”