Financial Reference

I’m sorry I haven’t posted lately. It was a rough week for me all around — I was sick, worked too much, and the market wasn’t too kind. It is the first time our portfolio had a very rough week. In the past, my portfolio has taken beatings, but this was completely different.

From past experiences, I know that these things happen from time to time. Net worth does not increase linearly (assuming you take some risk). And, since I take a lot of risk, our net worth jumps around quite a bit.

But I need to make some changes now that I’m married with child because my wife does not react to volitility in the same way, I have more responsibilities because of my son, and we do not have as much free cash flow to protect our portfolio.

I realize now that I can’t continue taking the risks I have taken in the past. It hurts, but I can’t continue to manage to my own risk tolerance and not take into account my new circumstances. After a conversation with my wife, we decided on a new investment plan involving lower leverage and more diversification.