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1. 0:00That's because I've been doing my
2. 0:01research and I found out about these
3. 0:03things called ETFs and they stand for
4. 0:05exchangeraded funds. It's a collection
5. 0:07of stocks put together into one single
6. 0:09investment, which I've heard is a good
7. 0:11thing as it keeps me diversified. So,
8. 0:13I've decided to invest in an S&P 500
9. 0:15ETF. It's historically provided returns
10. 0:17of 11.87% 87% between 1992 and 2026,
11. 0:22which feels like a pretty sophisticated
12. 0:23play to make given it includes all of
13. 0:26the top companies on the planet,
14. 0:27including Nvidia, Apple, Microsoft, and
15. 0:30Amazon. But let me be honest, I'm still
16. 0:31very growth focused. So, I've added a
17. 0:33couple of high conviction plays, which I
18. 0:35think are going to perform really well.
19. 0:37One of them is an AI ETF, and the other
20. 0:39is a quantum computing one because
21. 0:41that's the future, right? So, I've
22. 0:43decided to allocate a third of my
23. 0:45portfolio to each. But this is where
24. 0:46James, despite being increasingly
25. 0:48informed, is also in a really dangerous
26. 0:50psychological place that could unravel
27. 0:53his whole investing journey so far. And
28. 0:55the reason is subtle because in the
29. 0:57moment it appears that he's made some
30. 0:59rational investment decisions. But
31. 1:00actually, those rational decisions
32. 1:02become completely irrational once the
33. 1:04bull market disappears. Let me explain.
34. 1:08At £10,000, losses become material. Just
35. 1:10a 10% drop is £1,000. But the truth is,
36. 1:14even investments as broad as the S&P 500
37. 1:16have had years where they've dropped 45%
38. 1:19just in the past two decades alone. And
39. 1:21investments as narrow as an artificial
40. 1:23intelligence ETF has also dropped by 34%
41. 1:26in a year. And that's just in the last 3
42. 1:28years. Due to this, my portfolio could
43. 1:30quite easily see unrealized losses of
44. 1:322,34,000,
45. 1:34perhaps even more based on the
46. 1:36historical data if the markets were to
47. 1:38turn negative. is.