Hearing that the world is headed for disaster and chaos is by far more interesting than
foreseeing a world that is steadily progressing.

The odds are the second statement is more accurate than the first.

Just look back at the way your parents, grandparents, and even your great grandparents lived.
What are their stories and how did they take pictures to document their lives?   Did the car have
air-conditioning or seatbelts? What did telephones look like and how did they communicate with
distant relatives? How was cancer or other ailments treated?  How many TV channels did they
have and how did they listen to music?

I’m guessing that life got better over time.

Yet, we don’t like to look at the world this way.  There is a strange comfort in the drama of
destruction.   We respond faster to pessimism. We coddle it for longer than is necessary.  We
doom scroll and look for more.

Optimism feels too predictable and pollyannaish. It’s like a sappy Hallmark romcom that you
already know the ending to. Where’s the fun in that?

Looking at the state of the world and politics today, I’d say that things are understandably
unsettling.  The markets seem to have gotten more volatile these past few weeks and we’ve
seen bigger swings in our daily account values.

The big question is, how do we respond?

Let’s look at a bit of recent history.

In March 2020 the pandemic was announced and the world shut down. Fear gripped the world,
and we didn’t know what to make of it.  In the moment, what advice felt best?

•  ‘Things will get better, so keep investing.’
• ‘COVID is shutting borders, crippling supply chains, and the economy is about to spiral
  into an unmanageable collapse.  I think you should cut risk and sell off your portfolio.  It’s
  best to wait on the sidelines until things normalize.

Selling the portfolio may have felt best in the moment.  It would ease our pessimistic angst.  Yet,
the optimistic advice worked out best out best in the long run.

I don’t want to downplay the uncertainty we feel about world leaders, the economy, jobs, artificial
intelligence, and (fill in your fears here.)  But to say that people will accept what they don’t like is
unreasonable.  Like our grandparents and great grandparents, I believe we will always fight to
make things better.  We do move forward in the long run.

Pessimism is seductive. It’s OK to get caught up in it. It’s the force that makes us uncomfortable
and motivates us to make things better.  But invest like an optimist and invest for the long term.

Stay the course,
Barbara

Out-takes

I enjoy your feedback and like to share what people are saying about the Sunday morning
memos.  The responses to what we look for in 2025 were very fun.  Here are a few:

“This life is a gift. Each new moment, and each new day. I believe we only learn to live fully after
we face and accept our physical mortality instead of maintaining a full-speed state of busyness
trying to deny it. Presence is the present. I wish you presence, joy, health, happiness and true
wealth in 2025!  MM

“I don’t bother with new year resolutions (it’s usually about losing weight and exercising more,
which never work!) But “To be more present and compassionate, and to slow down and savor
simplicity” is doable.” ES

RC like to write “care plans” for each “room in her house” – physical health, emotional health,
educational, financial, spiritual, and simply”fun for me.”

“Be more in the NOW. I am currently reading Eckhart Tolle’s “The Power of NOW” enlightening!!
I would highly recommend.”  TN

Thank you for your lovely feedback! Please keep letting me know your thoughts.

January 5, 2025