83 Things I Learned About Investing in 2022

2022 was the best and worst year of my life. For that reason, it is the most human year that I have ever had. My daughter was born in the first half of 2022 and my father passed away in the second half of 2022.

I am still in my early 30s, deep in my career, but also at an age with a new child, a wife, real responsibilities, real bills, and a need to change my way of life to support a family. I am not entirely on my own, as my wife’s family is simply incredible, and close by, and I am lucky to still have my amazing mother and brothers, but my father was, at the end of the day, the force of strength and wisdom that I had always counted on for 30+ years of my life.

Losing that, more importantly, losing that in the way I did (will I ever be able to write what happened?) and not having his grandfatherly wisdom for my daughter, has burned my core, melted my fortitude.

A reality that now deeply connects me with those who have never had a father’s presence or have similarly faced such loss. I am actually ashamed at how ignorant I was in year’s prior about those who have suffered great loss or those who have raised wonderful families. At the same time, you just don’t know until you’ve been through it.

These are my reflections on markets in 2022 and all that life has to offer:

1. Understand Inflation: Knowing how inflation is calculated can prevent undue panic.
2. Anticipate Trends: Keep an eye on companies like Apple for industry shifts, like potential moves toward solar.
3. EV vs. Gas Costs: The widening cost gap between EV charging and gas refueling points to a changing automotive landscape.
4. Energy Market Dynamics: Recognize the challenges smaller energy companies face without support.
5. Market Cap Fluctuations: Even giants like Meta can experience dramatic shifts, showcasing market volatility.
6. Fed Talks: The unprecedented interest in Federal Reserve announcements signifies a growing public engagement with economics.
7. Correction Watch: Even marginal market movements can signal significant corrections.
8. Pandemic Winners and Losers: Stocks like Peloton illustrate the fleeting nature of “pandemic profits.”
9. Overlooked Crises: Awareness of issues like rising drug overdoses can add context to market and societal health.
10. Market Bubble Isolation: Fintwit represents a microcosm, far removed from broader societal concerns.
11. Seek the Obscure: 2022 might favor lesser-known stocks over crowded index heavyweights.
12. Apple’s Anomaly: Apple’s performance can distort perceptions of broader market health.
13. Inflation Opinions: The debate over transitory vs. persistent inflation impacts investment strategies.
14. Energy Incentives: Energy price shocks can catalyze shifts toward alternative sources.
15. Energy’s Ripple Effects: Oil price increases have wide-reaching impacts, highlighting our dependency.
16. Resource Abundance: Misconceptions about resource scarcity can skew market understanding.
17. Exploration Potential: Earth’s unexplored resources suggest untapped investment opportunities.
18. Repo Market Ironies: The interplay between repos and interest rates can create market opportunities.
19. Strategic Rate Hikes: The timing of Fed actions can have significant market impacts.
20. Sovereign Wealth Losses: Large-scale investment losses by nations can have global repercussions.
21. Russell 2000’s Retreat: Broad market indices can experience significant downturns, affecting diverse portfolios.
22. Widespread Drawdowns: A record number of stocks experiencing major losses underscores market breadth.
23. Recycling Realities: The sustainability of materials like aluminum offers unique investment angles.
24. Money Supply Contraction: Unprecedented changes in money supply can signal broader economic shifts.
25. Fear’s Virality: The rapid spread of market panic highlights the power of sentiment.
26. Echo Chambers: Financial narratives can become self-reinforcing within insular communities.
27. Regional Bull Markets: Political climates can influence sector-specific market trends.
28. Geographic Diversification: Investing in underappreciated regions can uncover hidden value.
29. Currency Dynamics: Strong dollar periods create unique international investment opportunities.
30. Sector Analysis: Understanding sector-specific downturns can inform smarter investments.
31. Market Sentiment Indicators: Watching portfolio showboating on social media can signal market tops.
32. Historical Context: Recognizing past market patterns can guide future investment decisions.
33. Market Illusions: Misinterpreting coordinated market moves as spontaneous can lead to misjudgment.
34. Energy Transition: Solar adoption acceleration hints at long-term energy sector shifts.
35. SaaS Market Dynamics: Understanding sector-specific factors can clarify market movements.
36. Policy Impact: Monitoring how government policies affect sectors like energy is crucial.
37. Tech Sector Trends: Observing tech performance under different administrations can offer investment insights.
38. Contrarian Opportunities: Bold positions in uncertain regions can yield significant rewards.
39. Long-Term Value: Recognizing lasting assets, like recycled aluminum, can inform sustainable investments.
40. Fed’s Audience Growth: The growing public interest in economic policy underscores its market impact.
41. Market Microcosms: Recognizing that market communities like Fintwit don’t represent the broader populace can ground your perspective.
42. Sovereign Strategy: Understanding national investment strategies and their implications is key.
43. Resource Misconceptions: Dispelling myths about resource scarcity can inform energy investments.
44. Financial History: Acknowledging unique historical financial events can prepare you for future anomalies.
45. Fear Monitoring: Noting the cyclical nature of market fears can help maintain perspective during downturns.
46. Policy Timing: Analyzing the sequence of economic policies can reveal market opportunities or pitfalls.
47. Investment Humor: Finding levity in market absurdities can ease the stress of investing.
48. Price Disparities: Observing cost differences in emerging technologies like EVs can signal industry shifts.
49. Global Investment Context: Recognizing how global events affect localized markets is essential.
50. Investor Adaptation: Staying flexible and learning from diverse market conditions and outcomes can enhance long-term strategy.

51. Econ Nerd Milestone: Engaging with the Federal Reserve and receiving insightful feedback can be an intellectual highlight.
52. SPAC Warrant Opportunities: The warrant market in SPACs might offer overlooked yet significant risk/reward potentials.
53. Inflation Perspectives: Retaining a nuanced view on inflation, especially amid geopolitical tensions, is crucial.
54. Value Hunting: Observing investment giants like Elliott Management can provide lessons in spotting value post-downturns.
55. Interest Rate Reflections: Comparing current interest rates to historical contexts can offer perspective on market reactions.
56. Unexpected Leaders: Finding that niche brands like Tommy Bahama outperform in turbulent times can highlight market quirks.
57. Technical Analysis Utility: Viewing technical analysis as a risk management tool rather than a crystal ball can guide more grounded strategies.
58. Retail Warnings: Significant valuation drops in major retailers can signal broader market or sectoral issues.
59. Extreme Outcomes: Experiencing both extreme gains and total losses teaches the harsh realities of high-risk investments.
60. Market Sentiment Indicators: Observing inactivity at a car dealership may reflect wider economic trends or consumer sentiment.
61. Demographic Dynamics: Considering the youthfulness of the global population can inform long-term market and societal trends.
62. Exploring BNPL: Experimenting with Buy Now, Pay Later services can reveal insights into consumer finance trends and sustainability.
63. Cosmic Connections: Contemplating our atomic origins offers a profound perspective on existence and perhaps investment in science and technology sectors.
64. Accepting Market Dynamics: Learning to embrace and navigate market fluctuations can lead to greater peace of mind.
65. Rate Contextualization: Understanding current interest rates in historical context demystifies market reactions and planning.
66. Innovative Work Models: Observing the rise of distributed yet connected teams can influence thoughts on business and investment in tech or real estate.
67. Fatherhood Insights: The early mornings with a newborn can offer unexpected joys and a deeper connection to natural rhythms—perhaps a metaphor for market cycles.
68. Elliot’s Tech Bet: Tracking significant moves by hedge funds in technology stocks provides a real-world lesson in contrarian thinking and potential market recovery indicators.
69. Rate Normalcy: Recognizing that current interest rate levels have historical precedents can alleviate undue concern or excitement.
70. Early Market Signals: Noting quiet moments in typically bustling economic hubs can provide early signals of broader economic shifts.
71. Financial markets experienced a challenging year in 2022, with the Nasdaq-100 and S&P 500 posting their worst performance since the Financial Crisis, down 33% and 20% respectively. However, both indices are still up 300% and 200% respectively since the crisis.
72. Understanding and accepting that no one can perfectly trade or invest is a valuable lesson for any investor.
73. In the face of economic challenges, it’s important to explore various solutions, such as leveraging trade agreements, collaborating with neighboring countries, and expanding domestic production.
74. Aluminum is a highly recyclable metal, with 75% of all aluminum ever mined still in circulation today. This highlights the importance of sustainable practices in the industry.
75. It’s essential to maintain a sense of humor and perspective when faced with challenging situations, such as a volatile stock market or global tensions.
76. Staying informed about current events and their potential impacts on the financial markets is vital for making informed decisions.
77. The ability to adapt to new situations and learn from past experiences is crucial for success in both personal and professional life.
78. Developing a strong understanding of economics and being open to learning from experts can lead to more informed financial decisions.
79. Maintaining a diverse investment portfolio can help mitigate risks and provide more stability in the face of market fluctuations.
80. Collaboration and open communication with others, both domestically and internationally, can lead to better outcomes in various aspects of life, including financial markets and global issues.
81. It’s beneficial to take a step back and view situations from multiple perspectives, as this can lead to more balanced and well-rounded decisions.
82. Being aware of the potential risks and challenges in the financial markets and having a plan to address them can help you navigate difficult situations more effectively.
83. Investing in personal and professional growth can lead to long-term success and fulfillment.