An Investing Lesson On Thanksgiving
Happy Thanksgiving folks!
As our friends across the pond tuck into their bountiful feasts today, it’s incredible to think about the seismic changes our lives have undergone over the past 18 months. And although this time last year seemed a lot darker than now, COVID-19 is still a major part of everyday life for many of us.
It remains a massive time of uncertainty for investors. 2020 was bad socially, but for many stocks, it was incredibly successful — Zoom, StoneCo, and Teladoc were some of the year’s top winners. How times have changed...
The rise of vaccines did not return the world to pre-COVID ‘normality’, 2020’s winners are 2021’s losers, companies with next to no revenue are trading in the $100 billion range, and Elon Musk is still tweeting sh*t — literally:
Nobody would have predicted how 2021 would go back in 2020 when vaccines became a reality and the path seemed so clear.
But nothing is certain, and uncertainty is ever the enemy of the investor. As we all know, keeping that itchy trigger finger away from the sell button on falling stocks is always a tough ask in times like this. Accepting the inevitability of uncertainty is so important.
Whether it’s what the experts say will happen to the stock market in 2022, which company you predict will be the world’s best in 10 years, or even just who will win the Super Bowl next year: predictions are not fact. Expectations move slower than reality on the ground, and there’s nothing you can do about that.
That is why I highly recommend taking five minutes to yourself this Thanksgiving and checking out long-time MyWallSt friend Morgan Housel’s latest essay: ‘How This All Happened’.
While it may not tug on the heartstrings or even provide you with unrealistic answers to how all of this contemporary uncertainty will go down, it may just provide the perspective needed to help you temper your expectations.
For an investor, this could be the key to surviving times like these.