Looking to The Past, Empowers Us to Look Forward
by Randall J. Cloud
The U.S. Economy has survived a wide range of unrelenting and “unprecedented” set of threats to its existence during the past two hundred and forty-six years.
As investors, we use the power of owning Broadly Diversified Global Portfolios to help us overcome times of economic and political uncertainty and to help us to prosper in times of economic growth.
By looking back at history, we can look forward with a healthy perspective.
The persistence of human innovation driven by freedom and economic incentives has empowered the people of this country to overcome the challenges and problems of past decades. Throughout our country’s history, the people of this great country have developed solutions to doomsday scenarios and pursued justice for the downtrodden.
To highlight this truth, you will see below a short listing from a longer list of unrelenting and “unprecedented times” in the past which were overcome by the people of this country.
Financial Crisis and Recessions
February 2020 to March 2020 - Global Economic Collapse and Recession
2007 to 2008 - Global Banking Collapse and Recession
2000 to 2002 - Dot.Com Bubble and Recession
1990 to 1992 - Recession and War
October 19th,1987 - Single biggest day decline of 22.6 % for Dow Jones Industrial Average
1982 to 1984 - Recession. Savings and Loan Bailout. Tough Time for Oil & Gas Industry
1973 to 1974 - Recession. Arab Oil Embargo. Inflation. Fuel Shortages.
1970s - Double Digit Inflation and Interest Rates rising to 21.5 %
Wars
2001 - On-Going - War against Terrorists
September 11th, 2001 - Attack on U.S.A. and World Trade Center Buildings
1992 - Gulf War
1960s - Vietnam War
1950s - Korean War
1946 to 1987 - Cold War against U.S.S.R. - Cuban Missile Crisis
1941 to 1945 - World War II
1917 to 1918 - World War I
1861 to 1865 - Civil War
Civil Unrest, Terrorism, and Assassinations
2020 – Riots, murders, and destruction of property around the United States.
2008 to 2016 - Random Terrorist Attacks against civilians in the U.S. and around the world.
1968 to 1972 - Random Bombings occurred in cities perpetrated by anarchists.
1960s – Riots, murders, and destruction of property in cities and on university campuses.
1960s - Assassinations of JFK, Robert Kennedy, and MLK
You can find a very long listing of civil unrest on Wikipedia by decade going back to 1783.
Pandemics
2020 to 2021 - Covid 19
2010 and 2014 - Whooping Cough
2009 - Swine Flu Pandemic
1981 to 1991 - Second Measles
1981 - HIV and AIDS
1916 to 1955- Polio
Seeing Doomsday Videos, Podcasts, and Emails for what they are
You may have seen a video, heard a podcast, or read an email or two predicting the end of the USA or its economy. I have found these doomsday predictions to be produced by people with agendas including:
1) hedge funds attempting to instigate panic selling among the public so they may profit.
2) Gold Brokers attempting to sell gold.
The question to ask when presented with one of these Doomsday Messages is "What is this individual or entity attempting to sell to me?"
The Value of Being Broadly Diversified Globally and Not attempting to Predict the Future
By owning Broadly Diversified Global Portfolios, we can look forward knowing we are not relying on predicting the future, picking stocks, or timing the markets to be successful investors.
Looking forward, we are well positioned to capture the positive investment returns generated by Capitalism whenever and wherever they occur.