Life is good today. Life is very good. In fact, life is the best it has ever been. And it’s getting better.
Optimism is the Only Realism. If we take any cue from history, this can only be true. To be anything other than a long-term optimist, we must cast aside thousands of years of history and inject only our own limited line of sight and our own limited understanding of human nature.
Have you struggled with finding confidence in investing? Or, maybe just with finance in general? You’re not alone. Just about all of my clients have felt the same way at one point or another. Sure, bad things can and do happen in the world of finance, but that’s never the end of the story, that’s never the end of your story.
I was recently invited to give a presentation to the Rotary Club of Rossmoor, and the topic I discussed, “Optimism is the Only Realism, If History Is Any Guide,” takes a dive into confidence and pessimism in finance. I think you will find the discussion quite interesting and hope that you discover a new way to start thinking about your finances.
Top Takeaways:
1. A permanent loss in a well-diversified portfolio is a human invention. It’s not something the market creates.
2. Owning a well-diversified portfolio has provided positive returns over the long run, period.
3. Companies make money and thrive off of human connection. And human connection will only continue to grow from here.
Time-stamped Show Notes:
9:13 – Why we should take cues from history
10:57 – Joe’s theory behind those with a pessimistic outlook on finances
12:12 – How companies make money off of the human connection
13:40 – The worst times in history to invest and the impact on an investment long term
17:37 – Owning a well-diversified portfolio has provided positive returns over the long run, period – how does that work?
19:05 – Q & A
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