Free markets are under attack. The media along with liberal politics have made capitalism the evil empire. They cast capitalist as greedy and unfeeling.
In fact everything that made America great is under attack. Our liberal leaders are trying to change everything that made us a great society. Many even say the facts prove that capitalism is wrong and socialism is the answer. I know as I am sure many of you are that ‘facts’ can be skewed to prove any viewpoint.
Capitalism and the free markets promote growth. Unfortunately the free markets do not ‘guarantee’ success. Some ideas flourish immediately, while some flounder. Some take time and require persistence.
There is a myth that pro capitalism is the same as pro business. This is a myth because capitalism promotes competition. While businesses want to limit competition. Businesses have to work harder to maintain their profits and grow.
Remember the more competitive the environment is the better and cheaper their products become.
The end beneficiary is the consumer with better products at a cheaper price. And of course added jobs.
Recently I watched the movie ‘In the Heart of the Sea. It is about the legend of Moby Dick the giant white whale. By the way I understand now why this movie was only in the theaters for a short time. Not very good.
Back then in order to power their lamps and stoves they needed oil. Well the oil then was derived from whale blubber. Can you imagine today if someone were killing whales or anything else for a profit? There would be protests everywhere.
But then it was there only source of power. So it was acceptable.
Because of capitalism another source of fuel was discovered and the business of killing whales stopped.
Capitalists are always looking for a better, more efficient way. The people working in the whaling industry were not happy. The business owners lost money and the employees lost their jobs.
As I have said some win some lose. But overall the consumer wins.
Today as it was in Moby Dick’s time no one could predict the future. If we invest our capital in a diversified manner we will succeed in the long term. However if you concentrate your assets in a single asset class, like whale blubber you will lose in the end.
The only thing that doesn’t change is that things change. However no one can tell you what will change and when.
There will be ups and downs. But patience and persistence will allow us to succeed.
Most if not all of us need the guidance of an investor coach/fiduciary adviser to find long term success.
Your coach will help you follow the three simple rules of investing..Own equities and high quality short duration fixed income…Globally diversify…Rebalance.