In The Grand Scheme of Things
We usually don’t think about our relative size compared to the things around us. In the grand scheme of things, we are like a speck of dust on earth.
If you were able to fly at the speed of light (300,000 km per second) it would take you 100,000 years to cross the Milky Way. And the Milky Way is just one of 2 trillion galaxies in the observable universe.
In a similar vein, market crises and economic fluctuations may appear large and insurmountable as we are going through it but in the grand scheme of things, it is just like that speck of dust we spoke about earlier.
There have been so many crises that the world has gone through over the years and many it will go through in time to come that you may not even remember what happened in 2022. Although, as we were going through it, it seemed as if high inflation and an unprecedented Fed hiking policy looked set to become a real disaster for capital markets.
There always seems to be a reason why it isn’t a good time to invest. If you had been scared by any of the reasons above and stayed out of the markets — waiting for a better time to get in, the opportunity cost of growing your wealth would have been quite significant.
As the U.S. market has the longest record of reliable market prices, we use it as a proxy for understanding long-term growth of wealth. $10,000 invested into diversified stocks in 1928 would have grown to more than $118 million today. This is despite all the crises and problems which we have encountered over the decades.
In 1932, earnings-per-share on average was $0.41. In 2018, it was $150. It has grown significantly over the years as due to economic growth, human ingenuity, and the time value of money. As we continue to innovate, improve on existing technologies, and improve our general existence, you can be sure that the companies which exist to play a part in these roles will continue to profit and grow as well.
If you are asking questions such as:
Is this a good time to invest or should I wait for better timing?
How do I recognise when is a good time to invest?
What do I do during a recession/inflation/(insert economic uncertainty here)
Due to the unique market conditions that we are in, we have specially dedicated a team to address such concerns. Click here to schedule a 30-minute pre-discovery session where we can find out your concerns and see how best to help you on your journey.