Amidst all the chaos in the financial markets, you may wonder if there is any hope for the future. I’m a pragmatic optimist. During my client meetings about investment management, I consistently reflect upon humanities innate, infinite desire to make the world a better place. In the large picture, we harness real energy together to solve problems and improve our lives, positively for each other. We are social creatures, and the result of this dynamic ultimately “raises the oceans” for all of our individual life boats.
This graphic is not meant to be predictive or definitive, but to show how wonderful our system works winnowing our resources to find the optimal paths forward.
In another example, where GM and Ford announced they were shutting their car manufacturing plants down yesterday, just today – the next day – they announced plans to re-tool their resources to begin manufacturing ventilator machines.
From an investment perspective, the point with this 2020 Year-to-Date chart is that index investing (i.e. the green line) forces investors to take the good along with the bad. I believe you can do better than that, especially when this kind of winnowing is taking place in the stock markets.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable. The S&P 500 is an unmanaged index of the shares of 500 widely held, predominantly large capitalization, U.S. exchange-listed common stocks. The index performance excludes dividends reinvested, fees and expenses. Investors cannot invest in any index directly.