The World is Not Ending
Unless you have been living in a cabin in the wilderness the past few years, you know that the world is changing. Countries, governments, companies and individuals are attempting to change how they manage their budgets. This is good for the long-haul and not–so-good for the short term. Whenever we cut back on purchasing the things we crave, we get depressed that we no longer have the satisfaction of our cravings. But after we save the money we get a warm satisfaction of having put a little money aside for the long-term.
Thus it is with Europe and just about everywhere else. Short-term gnashing of teeth and the fear of doing with less has everyone concerned. This concern is manifested in the volatility we see every day in the prices of our investments. But we must realize that this short-term pain will result in long-term prosperity. We just have to have a little faith, patience and discipline.
Yes, we must have faith in the spirit of humans to make the world a better place. We’ve been doing that since the beginning of time. And now is no different. In the long run all of this current day uncertainty will lead to the certainty of a better tomorrow.
Yes, we must have patience to allow this to happen. Things didn’t get in the mess they are in overnight. They are not going to get fixed overnight either. In the mean time, remain calm and don’t make rash decisions (like pulling all your money out of your bank and investments and buying gold bars.) Rash decisions may fatally wound you.
Yes, we must remain diligent. Stick to your plan. If you don’t have a plan, get one. Continue to build your rainy day fund, pay down debt (just like all those countries, governments, and companies are trying to do), contribute to your retirement fund every payday, and buy shares of the world’s greatest companies. When the market is down relish the fact that you just bought shares on sale with the knowledge that down the road those bargain-priced shares you bought today will be worth multiples of their purchase price because of the ever striving spirit of mankind and his marvelous capitalist system he has created to improve the lifestyle of all humans around the globe.
It might look bad now but we’ve been through tougher times in the past. And the world is a better place now than at any time in history. If we only have a little faith, patience and discipline.