It is natural to wonder if you could be doing more with your portfolio. Whether that be: protect better, grow more, or get ahead of the next trend or market crash. This instinct is never more apparent than when we experience crises like the COVID-19 pandemic or the war in Ukraine. This thinking is exaggerated due to the 24-hour news cycle which constantly reminds us of these events. We are bombarded by critics claiming “this time is different” and therefore, each of us needs to take dramatic action in our portfolio to stave off impending doom.
But as many advisors before me have pointed out, what these critics fail to acknowledge, is that what they are really saying is that what has worked for hundreds of years will suddenly no longer work. It appears that they are failing to realize they are suggesting the millions of people working for the world’s greatest companies will stop working. Or that these great companies will stop solving problems, stop innovating and fail to adapt.
We know that no one has a crystal ball and the evidence is overwhelming that trying to outguess the stock market is a losing proposition over the long-term. But betting on the stock market as a whole, what has worked for hundreds of years, is as David Booth says, “it’s investing in human ingenuity.”
Take a deeper dive on the topic of Human Ingenuity in this David Booth article: Meme Investing? Try Human Ingenuity Instead.