What Sounds Smarter?
Oscar-winning actor Jack Palance once said in a commercial for aftershave, “confidence is very sexy…don’t you think?”
But what’s even more “appealing” in the world of investing is…pessimism. We see so many “gloom and doom” sellers getting an audience. It seems smarter to be critical. And, news flash, it sells!
Even with all of its problems, our media and free press is essential for our society to continue to function. But they make money in the financial realm by focusing on short-term events, negative events, encouraging a follow the leader mindset of buying what’s already prospered (akin to what investment author Thomas Phelps has compared to shooting where the rabbit was vs. where it will be).
And the biggest message of all, encouraged by their sponsors – it’s time to make a change, make a trade. Don’t stick to what you’ve been doing. [Copyright 2022 CNBC, all rights reserved].
It reminds us of our work and the gravitational pull that encourages us to tell a client what they want to hear, vs. what they need to hear about their financial future and our best advice to them.
All we can say is, we're confident (thanks Jack) in the future of business and intelligent investing. No other system has proven more able to adapt and reward the innovator than the free market system. Because the incentives to do so are present (nothing is more powerful than aligned incentives).