It’s undeniable that we’re going through a turbulent time in the US. Tariffs are threatened, then rescinded; inflation continues to rise, while consumer buying power is decreasing. And the stock market has reflected some of this turbulence with several dips and recoveries. It is all probably a little unnerving for the average investor, but as a financial advisor, I remain optimistic. 

Why? One of the main reasons is my faith in the tenacity, resilience, and sheer size of US businesses. 

The US Business Landscape 

A recent article by Visual Capitalist clearly illustrates the strength of United States businesses. Of the 50 largest companies in the world, 34 of them are in the US. The country in second place is China with five of the largest companies in the world. Of the top companies in the US, 11 are valued at $1 trillion or more, well the rest are valued at hundreds of billions. It is exceedingly difficult to sink companies of this size, regardless of shifting economic policies or political maneuvers. 

You might argue that even the unsinkable Titanic was taken down by an iceberg. And major companies of yesterday (Blockbuster, Radio Shack, Toys R Us) have practically vanished today. While it’s true that some companies might stumble or even fail during economic uncertainty and political change, they will not all experience downturns. Many companies are nimble enough to change direction, develop new products or policies, and stay relevant. At the same time, new players are entering the field all the time. So some of the old guard may fall, but new businesses will inevitably rise to take their place. 

Investing Broadly in Business

The resilience and ingenuity of businesses is good news for individual investors who are savvy enough to diversify their holdings and not put all their eggs in a single securities basket. As a financial advisor, I will never advise buying stock in a single company or even a handful of companies. Rather, I believe in broad diversification across industries, sectors, and even nations. It’s not a flashy approach, but it’s a solid, time-tested one, and it holds up during times of intense change. 

During eras of uncertainty, there are always individual investors who become nervous and make emotion-based decisions that are not in their best interests. I’ve seen this time and again. 

So, next time you’re tempted to do something rash, I encourage you to consider the sheer size and scope of US businesses. They are as large and powerful as some nations, and they aren’t about to let something like political policies or changing leadership get in the way of their success. And that’s an excellent reason to continue believing in them, resisting rash financial decisions, and staying the course. The turbulence will subside, and many of these behemoths will remain.

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