Episode 049 – How I Managed My Emotions During the 08 Stock Market Crash
Hello everyone! Today we talk with Nicolas, an Argentinian who moved to Spain 5 years ago. He has experience living in a country with hyper-inflation and since then has used his own strategies and techniques to manage his financial assets and surviving the 2008 crisis.
We also talk about:
- Investing strategies
- Managing other people’s money
- Fundamental analysis and other techniques
- The Austrian School of Economics
- Moving from Argentina to Spain
- Index funds
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Investing as protection against inflation
Nicolas learned the principles of investing at a very early age, pushed by the very high levels of inflation that Argentina had in those years: collecting and saving money wasn’t an option, because of the strong reduction in value. Years later, he opened a broker account – initially as an experiment and almost self-educated – and learned first-hand one of the crucial aspects of investing, the emotional response and the biases everyone has when doing it.
Learning from the crisis
The 2008 crisis struck hard in Argentina when Nicolas was in the middle of his investing activity. He explains how it was an opportunity to know more about himself, to evaluate his choices and strategies in response to the various phases of the market. Emotions like fear can become a strong factor in determining investing choices, and it’s crucial to be aware of that.
Adapting investment strategies to a world view
Nicolas’s current strategy is based on two basic principles: the world is unpredictable and economic cycles are inevitable. He evaluates his choices in light of main drivers like time, asset allocation and risk management: this determines all the other choices, and a diversified asset allocation works best for him in defending his investment until the next bear market.
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- Rich Dad, Poor Dad
- A Random Walk Down Wall Street
- Just ETF
- Nicolas on Twitter
- Nicolas on LinkedIn
- Portfolio Visualizer
- Portfolio Charts