Investing Facts of Life

[dungoofed]

Bloomberg's Noah Smith picks his top 10 here:

http://www.bloombergview.com/articles/2014-12-26/ten-investing-facts-of-life

The original list of "aphorisms" appeared here:

http://www.businessinsider.com/things-everyone-should-know-about-investing-and-the-economy-2014-12

TL;DR: keep buying index funds : )

[AK]

Thanks for the aphorisms post. It was enjoyable.

[Travis]

27. Scott Adams writes, "A person with a flexible schedule and average resources will be happier than a rich person who has everything except a flexible schedule. Step one in your search for happiness is to continually work toward having control of your schedule."

If mustachians had an actual clubhouse or meeting room, this might hang over the door.

[dungoofed]

That was one of about three that I felt were out of place. I mean, it's very likely important to keep in mind, but very little to do with investing.

I think maybe it was included as something unique that Scott brought to the table. His One Page Financial Plan is the stuff of legend but there isn't much you can include in a list of 122 rules as it's so generic.

[Travis]

True, it has very little to do with the overall theme, but there were several quotes there that had dual meanings with how to run your life.  Since the list was pretty much an intervention for passive index investing, I thought it was ironic to include a straight mustachian motto alongside them.

[Johnez]

37. The S&P 500 gained 27% in 2009 -- a phenomenal year. Yet 66% of investors thought it fell that year, according to a survey by Franklin Templeton. Perception and reality can be miles apart.

This one is interesting.  The 66% who thought it fell must have sold, locking in their losses.

***

However, with so many preaching about staying calm and much talk about being in the market for the long term with phrases like- the market always goes up, set it and forget it, go index funds, and others like these, it all seems to be so easy, so soothing, so very hypnotizing that I wonder if there is ever going to be a time when a tidal wave is going to bring it all down on our heads.  And really, the jabs at home ownership lately have me almost convinced to play it safe in my journey to FIRE, and to explore other options beside the stock market.  How many remember the HFT flash crashes years ago?  And we are all told to stay calm, over and over and over.  I'm a skeptic at heart, I hope it serves me well.