Long-Term Optimism Validation

Long-Term Optimism Validation
On a day-by-day, week-by-week, and, obviously, year-by-year basis, there is a lot going on in the markets.  Our job as portfolio managers and asset allocators is to follow those things going on and apply needed perspectives and points of action to what we are doing in client portfolios towards the realization of a given outcome (a fancy way of saying, to monitor the markets and adjust portfolio activity as warranted to generate a good return and enable clients to achieve their investing objectives).  However, every now and then, our desire to be tactically effective in the short-term and to communicate effectively in the intermediate-term might cause even us to lose sight of the real long-term realities that we care about as investors.  And if there is a more powerful expression than this of why we are long-term bulls at The Bahnsen Group, always and forever, I haven’t seen it.  Does this chart say anything about what the Fed will do next year, or what will happen to high yield bonds in 2017, or what corporate profits will look like in 2018?  Of course not.  But in a world where free markets have brought the global poverty rate down 80% in one generation, I recommend staying bullish long term.  That optimism is completely rational.

Poverty Rates Chart

Share
Share on facebook
Share on twitter
Share on linkedin
Share on email

The Bahnsen Group is registered with HighTower Securities, LLC, member FINRA and SIPC, and with HighTower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through HighTower Securities, LLC; advisory services are offered through HighTower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and HighTower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of HighTower Advisors, LLC, or any of its affiliates.

About the Author

David L. Bahnsen

FOUNDER, MANAGING PARTNER, AND CHIEF INVESTMENT OFFICER

David is a frequent guest on CNBC, Bloomberg, and Fox Business and is a regular contributor to National Review and Forbes. David serves on the Board of Directors for the National Review Institute and is a founding Trustee for Pacifica Christian High School of Orange County.

He is the author of the books, Crisis of Responsibility: Our Cultural Addiction to Blame and How You Can Cure It (Post Hill Press), The Case for Dividend Growth: Investing in a Post-Crisis World (Post Hill Press) and his latest, Elizabeth Warren: How Her Presidency Would Destroy the Middle Class and the American Dream (2020).

Subscribe

Play Video
Play Video
Play Video
Play Video
Play Video
Play Video
Play Video
Play Video