Successful investing is truly a test of one's emotional intelligence, perhaps even more so than one's actual intelligence.

Going back four years, when the world shut down due to COVID-19, many feared a great depression only to have governments print enough money to fuel a major market rally in stocks. As euphoria and excess savings drove stocks to unreasonable levels (meme stocks in particular), the Central Banks started raising interest rates and subsequently sparking a major sell-off in 2022. Investors seemed to be in despair right up until last October as no gains had been made for two years. With a new war having started in Gaza, markets seemed almost certain to fall further until the US Federal Reserve unexpectedly talked down their aggressive positioning and sparked a historic rally to save the stocks – a major beneficiary being the major speculative stocks related to Artificial Intelligence. Fast-forward to today and investors are now crippled by Fear of Missing Out (FOMO) and Central Banks are reversing course yet again...

So, here we are today. Are we in a generational stock market bubble related to Artificial Intelligence? Or is it a new exponential age for technology, akin to the industrial revolution? Maybe it's both, but only time will tell.

I think of Warren Buffet who said “You’ll see everything if you’re around markets for a reasonable period of time. We have seen companies sell for tens of billions that are worthless, and we have seen things sell for 20% of what they are worth”. My approach to the portfolio has been to try and exercise a level-headed approach to these markets and execute my strategy. It’s the best way I know to keep making money and protect our wealth.