You have likely heard the expression, “the more things change, the more they stay the same.” We believe this to be true in the world of finance as well. Of course, there are always idiosyncratic differences with every passing day. The rain today might be a bit heavier than it will be tomorrow. This November might be colder than last November. However, in general, the patterns of our lives tend to trundle along a similar track year by year.
One of the best ways to scare people is to tell them “this time it’s different.”
This is a sure fire way to challenge someone’s wisdom — and equilibrium. It is often a power move to make you feel you cannot rely on your own experience or wisdom. With each new situation we encounter, the goal is to discern how this is different. Because there will be a lot the same as well. We can build upon our knowledge base regardless of the situation in which we find ourselves.
Since Kamal and Tracy started in the capital markets at Sophia Financial Group, there have been many changes. More technology, more investors, faster access to information, and the kind of businesses that are most successful have altered over time. However, the underlying principles have remained the same. Strong balance sheets win out. A long-term perspective is more likely to be profitable, and the market goes down many times on its way up.
A long-term perspective is more likely to be profitable.
When you listen to our wise and wonderful speakers on today’s market, focus on the bigger picture and check it against your current strategy. Honour what you know and listen for the differences so you can capitalize on them and not run fearfully into the nearest cave.
Life will always be changing but the underlying truths remain the same — you know more than you think you know. And, the most successful investors listen carefully to the new opportunity inherent in every situation.