015. How I Invest $1 Million - December 2022

The first 2 weeks of December 2022 was interesting to say the least. After a positive overreaction in November due to improving inflation data, the markets turned sour and became quite pessimistic. But Week 2 of December saw a reversal of that as people's expectations of a 50 basis point interest rate increase looked more and more likely. Then we had this morning's news that consumer prices went up a lot less than expected. The markets shot up like a rocket when it opened. But then it appeared some folks wanted to take some gains off the table and we pared back some of those gains. I remain in the camp that all of these market reactions are all overblown and in the long run is just simply noise. And that's why I remain committed to the plan I've developed.

To that end, I continue to buy into the market with my risk parity style allocation for the $1 Million portfolio at the increased clip I've recently committed to. By spring of 2023, I should be fully invested and plan to just let things ride. After the bottom we saw in the summer, this year is looking much better as we head into the home stretch, at least for me. If I can get out of this year with a 10% paper loss in the portfolio, I'd take it.

Lastly, the question as to if it's appropriate to compare this portfolio to the S&P 500 has come up. I think it does for a few reasons. The primary one is that it's the broad market index that most people compare themselves against. It makes an easy point of reference when you're comparing different strategies. Second, I think that if I were not in this allocation, it would be some percentage in the S&P 500 and maybe some smaller percentage in bonds. So I still contend it's an accurate benchmark for comparison if you keep in mind that this allocation is affected by different factors such as the amount in cash and commodities along with the equities and bonds allocations.

As always, I appreciate you following along. See you next month!

Видео 015. How I Invest $1 Million - December 2022 канала phuocle