The last 20 years have been an exceptional time for world economies. Globalization opened the world. Undeveloped nations gained global access to modernity (think China) and developed nations gained access to the necessary raw materials and more of underdeveloped nations. Food became plentiful, life expectancies expanded dramatically, and life improved for billions of people.
The miracle of globalization was then supercharged by the easy money policy of the world’s central banks providing an ocean of capital. A multitude of newfound opportunities were realized. And, of course, massive government spending of nations facilitated all of this. It has been an era of interest rates dropping to near zero and stocks markets rising to record valuation.
Unfortunately, history does not unfold linearly. It is rather a series of eras, and as time passes, eras end, and the transitions are not often easy.
This is not an argument against investing, but rather how to invest.
I do not believe the next 20 years will be like the last. However, I do believe the 21st century will be the American Century. America has an abundance of agricultural and mineral resources, natural gas, enormous regions of relentless sunshine, and huge plains of almost constant green wind. The new American era will be one of clean reindustrialization and of technology bringing manufacturing back home. While technology companies will continue to reinvent the world; many established American companies with the depth to realize the coming new era should prosper.
We at WST suggest you look out past the current turbulence and towards the future. You may see opportunity.
As always, know what you own, do not overinvest, and stick with quality.