I love the title of your publication, and more so, I love when your posts blend money and meaning.
Having recently started to get to know you better, I know everything in your world has meaning, and money cannot be divorced from meaning.
Here’s the deeper meaning I see in this article.
The greatest (and perhaps only fear) of humans is the fear of the unknown. When your clients call you and ask you to be a crystal ball gazing prophet about what’s going to happen as a result of the latest election or inauguration, they are expressing their deepest fear, the unknown.
Your answer is threaded through every paragraph of this post with simple stability. Have faith. Stay steady. Stand solid. Everything always changes, and in those changes, we grow, and in that growth we learn to adapt, and in that adapting, we grow. The human condition is to face the unknown, stay steady in the faith and trust in humanity that no matter what happens, dot.com bust or real estate market crash or global pandemic, we always learn to adapt and GROW.
Teri - there you go again....nailing the essence of this piece and the book we discussed this morning.
Most people think the keys to the investing kingdom exist outside themselves, are complex, and are fraught with danger. They're not. The keys are virtues we already possess inside, one of which is not only surrendering to the unknown but making friends with it, having faith in it, and trusting it.
When it comes to investing, if the return is certain (like a CD) the return will be lower. If the return is unknown (as it is with stock), over the long term, it will be higher. (A portfolio needs both actually).
Most importantly, as you point out, the same is true for the depth of ourselves and our lives. Personal growth comes not from certainty and safety but from uncertainty and vulnerability. It's in the uncertainty and vulnerability that the greater returns are found.
in some ways, I am very friendly with the unknown, and in other ways I am still terrified of the unknown...yet it usually turns out to be like the scary monster under my childhood bed, which is really just the stuffie I long forgot about.
It just strikes me that this goes way beyond finance and investing. I know that's obvious to you, but it's a huge lightbulb for me. I just never connected these dots. I think I'm going to need to hear you say it many times over in different ways for it to sink in. I know that shouldn't be the case, but I'm saying it out loud because I'd bet I'm not the only one who reads something like this and feels as though I am being asked to walk on the moon. You don't know what you know when you're an expert, and this very basic message is so important, but it's the person you are who can hold on and stay stably seated that is the real gift. I need to be around that grounded faithful energy in relationship to finance. Your stories please.
Rick - thank you. I appreciate what you said here. Here's the interesting thing - we ALL need to hear it many times over because our innate wiring is to perceive and flee danger. And in today's media age - amplifying our emotions generates "clicks."
I'm a stand for finding ways to telling us--investors and human beings--what is good for us and meaningful for us, in unique ways that are relatable and resonate. I'm so glad we are connected to each other, as writers and readers, and a whole lot more!
James, this is so good. Those first 2 charts are especially telling. I don’t remember the post-Vietnam years (Nixon, Ford, Carter) but always thought of those as being periods of economic loss when it really wasn’t. Prob has more to do the first US econ era I remember was Reagan, which was ofc significantly better, even if due to trickle down effects 😏. Enjoyed this read. Sorry I didn’t comment on the draft in our group.
Hi Matt. Thank you for commenting. The Reagan era was also my first with any kind of awareness. No worries about the draft, you’ve been busy getting a piece across the finish line and I’m off to read that now. :). See you tomorrow.
John! I almost included that quote in the piece, as it's a treasured favorite and my coach brought it up when reviewing the essay prior to publishing it. Amazing that came right into your field of view as well.
“If investing came with a warning label, it might read: Unnecessary action can be harmful to returns.”
James, if your posts came with a warning label, it might read: “Caution: The contents of this post go far beyond finance and investing. May cause you to better understand the human condition.”
Simon, thank you - I appreciate that so much because I try to find the connective thread in money and meaning that helps us become aware of our humanness, and also both embody it and manage it optimally. Very grateful for you being here.
Thank you for this, James. I have come back to this after fortifying myself with some coffee. I am not a finance person, as any peek at my bank account will reveal.
I wonder if "Unnecessary action can be harmful to returns" might apply to many other things, such as relationships and perhaps even growing a Substack channel.
John, I appreciate you reading - and I love your take on "unnecessary actions." So true as I have challenged some relationships in the past with unwarranted actions!
I loved this piece James and Teri's comment really nailed home what I was thinking. The stock market is the greatest creator of middle-class wealth in human history. Like a roller coaster, it dips and rises but unlike a roller coaster, it will only continue to climb and climb over time. "Have faith. Stay in your seat".
Tommy - thank you pal. And you nailed it, “ownership” is the greatest wealth creator there is. And that anyone can own global capitalism today at almost no cost is a life changer for those who can embrace the roller coaster and be patient. I appreciate you taking the time to comment. (:
I love the balance of clarity and calm. The graphic that shows the market across many presidents on both sides of the aisle drives home your key points. You have wonderful quotes that were not just window dressing but support your thesis. I don't know anything about the market, but this article made a lot of sense. I love the underlying principles of calmness and steadiness in the presence of all that uncertainty. Sit and wait before acting on impulse, wise words!
Genie, thank you for the kind remarks and taking the time to share. I’m so pleased the essay landed on you the way it did because I try to not be too technical when imparting important concepts for investors of all stripes. 🙏🙏
I love the clarity and calmness in this article. It is very balanced and wise. I love how you present a balance of facts and wisdom. Seeing that chart of all the presidents, on both sides of the aisle really gave me a sense of perspective. And the quotes were truly wise, and supported your premise. I know nothing about the market, but this made sense to me.
I lived through most of the crises that you mentioned as an investment banker and as a financial advisor to a couple of not for profits. In every case, to borrow a phrase by Snoop Dogg and T-Mobile, "people wuz trippin'!"
I recall one NYC arts organization and the actions that they took in the 2008-2009 correction. They had some really powerful finance types on their board who truly believed they could time the market. So they sold their endowment into the falling market and locked in the loss. They didn't catch the recovery and ultimately had to sell their building because of the financial distress.
Two other related psychological fallacies embraced by investors are cyclicality and scarcity. The excellent graphs in your essay show that the stock market is not cyclical, although it does exhibit random volatility around a definite upward trend. What goes up doesn't have to come down. In the psychology of scarcity, people have the fear that good years will be followed by lean years. This so ingrained in human nature that it is found in the Old Testament. Not the case, and investors have lost out on a lot of return because of the psychology of scarcity.
Drake - so sorry to hear of the NYC arts organization. Ugh. And your wisdom around scarcity is dead on, and it is ingrained in our human nature. One thing I have discovered from serving families over the years is that the scarcity vs abundance mindset can largely be attributed to our family of origin-how we were raised-and also it can be modified over time, with by embracing embracing perspectives at an emotional level and steady coaching. For example, talking to a parent’s heart about how scarcity might impact their children and grandchildren resonates with them differently than talking to their head about risk, volatility, and drawdowns.
As always Drake - thanks for reading. It’s my intention that my next essay or two pivot back to meaning from money. Stay tuned :)
I love the title of your publication, and more so, I love when your posts blend money and meaning.
Having recently started to get to know you better, I know everything in your world has meaning, and money cannot be divorced from meaning.
Here’s the deeper meaning I see in this article.
The greatest (and perhaps only fear) of humans is the fear of the unknown. When your clients call you and ask you to be a crystal ball gazing prophet about what’s going to happen as a result of the latest election or inauguration, they are expressing their deepest fear, the unknown.
Your answer is threaded through every paragraph of this post with simple stability. Have faith. Stay steady. Stand solid. Everything always changes, and in those changes, we grow, and in that growth we learn to adapt, and in that adapting, we grow. The human condition is to face the unknown, stay steady in the faith and trust in humanity that no matter what happens, dot.com bust or real estate market crash or global pandemic, we always learn to adapt and GROW.
Teri - there you go again....nailing the essence of this piece and the book we discussed this morning.
Most people think the keys to the investing kingdom exist outside themselves, are complex, and are fraught with danger. They're not. The keys are virtues we already possess inside, one of which is not only surrendering to the unknown but making friends with it, having faith in it, and trusting it.
When it comes to investing, if the return is certain (like a CD) the return will be lower. If the return is unknown (as it is with stock), over the long term, it will be higher. (A portfolio needs both actually).
Most importantly, as you point out, the same is true for the depth of ourselves and our lives. Personal growth comes not from certainty and safety but from uncertainty and vulnerability. It's in the uncertainty and vulnerability that the greater returns are found.
May we "make friends" with the unknown. :)
in some ways, I am very friendly with the unknown, and in other ways I am still terrified of the unknown...yet it usually turns out to be like the scary monster under my childhood bed, which is really just the stuffie I long forgot about.
It just strikes me that this goes way beyond finance and investing. I know that's obvious to you, but it's a huge lightbulb for me. I just never connected these dots. I think I'm going to need to hear you say it many times over in different ways for it to sink in. I know that shouldn't be the case, but I'm saying it out loud because I'd bet I'm not the only one who reads something like this and feels as though I am being asked to walk on the moon. You don't know what you know when you're an expert, and this very basic message is so important, but it's the person you are who can hold on and stay stably seated that is the real gift. I need to be around that grounded faithful energy in relationship to finance. Your stories please.
Rick - thank you. I appreciate what you said here. Here's the interesting thing - we ALL need to hear it many times over because our innate wiring is to perceive and flee danger. And in today's media age - amplifying our emotions generates "clicks."
I'm a stand for finding ways to telling us--investors and human beings--what is good for us and meaningful for us, in unique ways that are relatable and resonate. I'm so glad we are connected to each other, as writers and readers, and a whole lot more!
James, this is so good. Those first 2 charts are especially telling. I don’t remember the post-Vietnam years (Nixon, Ford, Carter) but always thought of those as being periods of economic loss when it really wasn’t. Prob has more to do the first US econ era I remember was Reagan, which was ofc significantly better, even if due to trickle down effects 😏. Enjoyed this read. Sorry I didn’t comment on the draft in our group.
Hi Matt. Thank you for commenting. The Reagan era was also my first with any kind of awareness. No worries about the draft, you’ve been busy getting a piece across the finish line and I’m off to read that now. :). See you tomorrow.
“Do you have the patience to wait until your mud settles and the water is clear?
Can you remain unmoving until the right action arises by itself?”
Lao Tzu from the Tao Te Ching.
John! I almost included that quote in the piece, as it's a treasured favorite and my coach brought it up when reviewing the essay prior to publishing it. Amazing that came right into your field of view as well.
I will be in touch soon.
Well written. Appreciate the facts you present. Still very nervous
Ken, thanks for commenting - I will call you this week to talk about your nerves. :) I've owed you a call for a while!
“If investing came with a warning label, it might read: Unnecessary action can be harmful to returns.”
James, if your posts came with a warning label, it might read: “Caution: The contents of this post go far beyond finance and investing. May cause you to better understand the human condition.”
Simon, thank you - I appreciate that so much because I try to find the connective thread in money and meaning that helps us become aware of our humanness, and also both embody it and manage it optimally. Very grateful for you being here.
Thank you for this, James. I have come back to this after fortifying myself with some coffee. I am not a finance person, as any peek at my bank account will reveal.
I wonder if "Unnecessary action can be harmful to returns" might apply to many other things, such as relationships and perhaps even growing a Substack channel.
John, I appreciate you reading - and I love your take on "unnecessary actions." So true as I have challenged some relationships in the past with unwarranted actions!
I loved this piece James and Teri's comment really nailed home what I was thinking. The stock market is the greatest creator of middle-class wealth in human history. Like a roller coaster, it dips and rises but unlike a roller coaster, it will only continue to climb and climb over time. "Have faith. Stay in your seat".
Tommy - thank you pal. And you nailed it, “ownership” is the greatest wealth creator there is. And that anyone can own global capitalism today at almost no cost is a life changer for those who can embrace the roller coaster and be patient. I appreciate you taking the time to comment. (:
I love the balance of clarity and calm. The graphic that shows the market across many presidents on both sides of the aisle drives home your key points. You have wonderful quotes that were not just window dressing but support your thesis. I don't know anything about the market, but this article made a lot of sense. I love the underlying principles of calmness and steadiness in the presence of all that uncertainty. Sit and wait before acting on impulse, wise words!
Genie, thank you for the kind remarks and taking the time to share. I’m so pleased the essay landed on you the way it did because I try to not be too technical when imparting important concepts for investors of all stripes. 🙏🙏
I love the clarity and calmness in this article. It is very balanced and wise. I love how you present a balance of facts and wisdom. Seeing that chart of all the presidents, on both sides of the aisle really gave me a sense of perspective. And the quotes were truly wise, and supported your premise. I know nothing about the market, but this made sense to me.
I lived through most of the crises that you mentioned as an investment banker and as a financial advisor to a couple of not for profits. In every case, to borrow a phrase by Snoop Dogg and T-Mobile, "people wuz trippin'!"
I recall one NYC arts organization and the actions that they took in the 2008-2009 correction. They had some really powerful finance types on their board who truly believed they could time the market. So they sold their endowment into the falling market and locked in the loss. They didn't catch the recovery and ultimately had to sell their building because of the financial distress.
Two other related psychological fallacies embraced by investors are cyclicality and scarcity. The excellent graphs in your essay show that the stock market is not cyclical, although it does exhibit random volatility around a definite upward trend. What goes up doesn't have to come down. In the psychology of scarcity, people have the fear that good years will be followed by lean years. This so ingrained in human nature that it is found in the Old Testament. Not the case, and investors have lost out on a lot of return because of the psychology of scarcity.
Drake - so sorry to hear of the NYC arts organization. Ugh. And your wisdom around scarcity is dead on, and it is ingrained in our human nature. One thing I have discovered from serving families over the years is that the scarcity vs abundance mindset can largely be attributed to our family of origin-how we were raised-and also it can be modified over time, with by embracing embracing perspectives at an emotional level and steady coaching. For example, talking to a parent’s heart about how scarcity might impact their children and grandchildren resonates with them differently than talking to their head about risk, volatility, and drawdowns.
As always Drake - thanks for reading. It’s my intention that my next essay or two pivot back to meaning from money. Stay tuned :)