No matter your background or political affiliation, you’ve probably been affected in some way by the unusual and sometimes troubling times we’re living in. With so much division, questions about what’s true and what isn’t (partially thanks to AI), and tension, it’s hard to know what will come next. Because of all the uncertainty, why not choose hope?
Hope is one of the three pillars of Self Wealth, a concept I developed in my book Self Wealth. The other two main pillars are financial security and purpose, which I believe are also crucial elements of living a full and rich life. Hope is linked to the other two pillars because it is the driving force behind them, the reason to get out of bed in the morning, keep going, and continue looking toward the horizon with optimism.
As a financial advisor, part of my job is to tune out the doom-and-gloom noise and remain optimistic. While this may seem like an odd and fluffy sentiment, it is actually backed by facts and historic trends. Since the dawn of the stock market and early investing, we have experienced dozens of tense or troubling moments—unprecedented times. Inevitably, some people panic, while others choose to remain level-headed and stay the course. And just as inevitably, those steady, hopeful investors are rewarded. We’ve seen this play out time and again. In recent history, the Dot-Com Bubble burst in the year 2000, sending markets into a freefall. In 2008, the Great Recession was created by the subprime mortgage crisis. And in 2020, fear surrounding the COVID pandemic caused markets to crash. In all instances, the economy—and the stock market—not only bounced back but experienced robust and sustained growth.
All data points to the fact that we will get through this difficult moment as well, and I have no reason to believe otherwise. That’s why I choose optimism and hope. I’m sincere when I advise my clients to remain steady, think long-term, and have faith that this moment will pass.
Long-term thinking has always been a winning strategy. On a long timeline, the market has always historically grown and emerged from its temporary slumps. And economic and political turmoil has subsided. Because of this, it is important to not make any quick decisions and to keep your sights focused on the long game. When you’re thinking about twenty years down the road, you will be better able to resist impulsivity when the market endures a slump. On a long timeline, slumps don’t matter and it’s always (historically) better to ride them out and stick to your strategy.
I encourage you to remain level-headed, consult your financial advisor, and continue to have hope. During tumultuous and disquieting times, hope is powerful.
