A Glimmer of Hope
When I talk with prospective clients about their financial future,
I find that their feelings range from apprehensive to despair. Few seem at all
hopeful or optimistic. This is natural amidst the deadlock and acrimony in
Washington and in the aftermath of a devastating recession and fitful recovery.
And yet we know from history that we are likely to see better times in the
future. It has been a modern conceit that we could override human nature and
suppress the business cycle. What we have shown is that with great technology
and modern communications, we can accelerate the business cycle and perhaps
make the downturns worse, not banish them. Still, just as we’ve experienced a
historic bust, we’re likely to have a historic boom again at some point. It
pays to be realistic but not get mired in despair. Those who are too gloomy may
make bad mistakes and get disappointed yet again – when once again good times
roll. And failure to plan for prosperity can be almost as big a mistake as
assuming that hard times will never come. Successful investing requires
balancing prudent risks and that means balancing emotions too.