When I turned off the bridge and onto the levee an owl startled into flight, chased up the Brodhead Creek by four crows. I watched intently for the next quarter mile of my run as the crows chased the owl through the skies.
But then the owl entered a wooded area on the other side of the creek and I saw the crows disperse and return to the levee. A few moments later I saw the owl soaring high and free of the annoyance of the cawing crows.
Many commentators promote themselves as the wise owl, when in reality they just make a lot of noise. 24 hour news networks and 24 hour business news networks have to fill the air with content. Much of it is well written, well researched, and well produced. That doesn’t mean that is it is necessarily relevant in our daily lives.
What is relevant is that people need to live their lives while keeping a focus on their long-run plans: a life filled with the activities important to them. Most of the so-called news is just a distraction, 24 hours of soundbites that become insignificant when put into the context of a decades-long financial plan.
Here’s four media “go to themes” that in my opinion have little direct bearing on the average American’s investment portfolio, and therefore should not cause anxiety in that context:
1. Will America maintain its position as the preeminent world power? Not forever. No society lasts forever, why would it be different with us?
2. Will it suddenly turn from Eminence to Anonymity? Not likely. Recent generations of Americans may seem less virtuous than our predecessors, but we continue to rank amongst the hardest working and most productive workforces in the world.
3. Will China ever become the next United States? Impossible. With thousands of years of authoritarian rule, that culture is well trained to copy but has no concept of “Yankee Ingenuity”. Furthermore, on a per capita basis, China’s GDP ranks near the middle of the nations, along with the Dominican Republic and Jordan.
4. Will there ever be peace in the Middle East? Don’t expect it to happen until a major spiritual change takes place amongst the three major religions with historic roots in the area: Muslims, Jews and Christians.
With all of these things taking place, it still makes sense to invest in a diversified portfolio* of good businesses around the world. Businesses have the ability to adapt and generate profit for their shareholders no matter what the political or economic climate.
*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not eliminate market risk.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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