Buoyant markets and the eternal feeling of FOMO

As the markets are in a buoyant mode, I am receiving increasing numbers of messages asking for advice on whether to invest in this or that market.

 

I am a researcher and lecturer with some outdated training in forex trading and with a small investment portfolio as my pastime just to lighten the boredom of life. But if you will, here is my more-than-a-decade-long long-term investment ethos:

• It is very unlikely that you can beat the market. If you think you can, think twice. I was very lucky to get to know people like John Bogle very early. If you want some advice from him, have a look at his book.
• Having the above point in mind, dollar-cost-average when there is blood in the streets (in bear markets), take profit when everyone FOMOes. Otherwise, stay put, relax, and enjoy your life/work!
• While dollar-cost-averaging, have some exposure to assets/investments with asymmetric payoffs. 
• In case you are FOMOed, keep in mind that life is long enough, be patient, and wait for your turn. Believe me, your turn will come.
• It is a waste of the good gift of life to be spent on trading. I am sure there are very many great productive things you can do with your life. Unless you really love trading, don’t make trading your full-time profession, except if you are a fund manager or adviser or you work for an investment services business. In that case, it becomes a heads-I-win, tails-you-lose situation, the best of the two worlds. 
• In case you are lucky and make some good money on your investment, be humble and generous. Believe me (or for that matter, the Bible or the classic Persian literature), cast some of your profits upon the waters and it will return to you manyfold.
• Don't listen to anybody (including me). Do your own research.

I am also receiving some questions on investment in Bitcoin, I have always been optimistic about Bitcoin’s future. But I always refrain from price forecasting, and for good reasons. I have written a few papers on Bitcoin and crypto-assets. In this paper, my coauthor and I have highlighted one very specific feature of Bitcoin and in this one, I have explored certain governance issues in Bitcoin, which answers some questions raised by Bitcoin skeptics. If you have time, you may have a look and decide for yourself whether Bitcoin is worth investing in. 

Again, I am not an investment adviser, and this is not investment advice.

Enjoy your holidays and have a great 2021.