Good Mornin’
It's hard to believe that we are nearing the end of summer, hoping everyone is enjoying the final relaxing, sunny days!
It’s been an eventful few weeks in the markets. Global markets have increased over the past couple of weeks, with the Canadian equity market rebounding to new highs and U.S. equities nearing their mid-July peak. Meanwhile, government bond yields remain near their lows for the year. After being shaken by growth concerns earlier in August, which wasn’t really the plan, equity markets have swiftly regained confidence in the resilience of the U.S. economy and the ongoing downward trend in inflation.
On the topic of plan…..as you can see above, my weekend drive didn’t quite go as planned, and I ended up on the side of the road Saturday.
The Scout having issues wasn’t in my planning, but it was a solid reminder that, as with everything in life, our intended direction rarely goes without alterations, roadblocks, and unintended diversions.
C'est La Vie
While attending Bishop’s University in Quebec, I often heard the saying “c’est la vie”…but I never gave it much thought until this weekend.
The literal translation is “That’s life.” In other words, “this is how it is” with an implication that there’s nothing you can do to change the situation. I’ve often heard the expression with a passivity that sounds a bit de-motivating and even in a negative context, implying, “Why fight the facts?”
Stepping back and reflecting on the saying on the side of the road, I’d suggest that the saying is ultimately a mindful observation of what is…and our ability to understand this, and how we accept and adapt to this trust that….when things don’t go according to plan, we need to accept, we must adapt, and we need to continue our progress by taking action.
Michael J. Fox once described his approach to living with Parkinson’s disease. He explained, “If I let it affect everything, it’s gonna own everything. I don’t deny or pretend it’s not there, but if I don’t allow it to be bigger than it is, then I can do everything else.” an inspiring description of the power of acceptance of life as it is and reveals the importance of keeping things in perspective.
Perspective teaches us to bring truth to the current reality of the present moment without judgment. This philosophical vantage point can help us in our investment decisions and our trek through life. Mindfully accepting the awareness of what is precisely the way it is. Then, we can take authentic, honest and appropriate action to find the best solution. I’d even go as far as to say that we can always benefit from the shifts in our planning. Having plans built around optionality will leave us less fragile to life’s derailments.
“This is the central illusion in life: that randomness is risky, that it is a bad thing— and that eliminating randomness is done by eliminating randomness.”
Nassim Nicholas Taleb
Antifragile
Author of The Black Swan and one of the foremost philosophers of our time, Nassim Nicholas Taleb, has penned a fantastic book on how some systems we can incorporate into our lives can benefit from disruption and disorder.
In the pages of Antifragile, he offers a definitive solution: how to gain from disorder and chaos while being protected from fragilities and adverse events. He calls the "antifragile" one step beyond robust, as it benefits from adversity, uncertainty and stressors, just as human bones get stronger when subjected to stress and tension.
Taleb stands uncertain on its head, making it desirable, and proposing that things be built in an antifragile manner to behave—and thrive—in a world we don’t understand, which is too uncertain for us even to try to understand.
“Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors and love adventure, risk, and uncertainty. Yet, in spite of the ubiquity of the phenomenon, there is no word for the exact opposite of fragile. Let us call it antifragile. Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better.”
Patience is a form of wisdom. It demonstrates that we understand and accept the fact that sometimes things must unfold in their own time.”
Jon Kabat-Zinn
Agility Planning
Whether you are wealth planning, charting a course for personal achievement or steering the direction of an organization, the traditional rigid approach to setting goals is no longer sufficient.
To thrive, we must cultivate a mindset and methodology that embraces flexibility, which I call agility planning.
If we can be open-minded in our direction and dynamic in our approach, we can ensure we can be prepared for the unknown ahead.
I have a little story for you……
Two boys were heading out fishing…..the first heads straight to the marina to buy the best fishing boat money can buy. He specs out a custom, carbon fibre rod….he spends time reading up on everything there is to know about fishing….you name it, he read it! And, of course, he's watching the fishing channel every night for hours, learning from the best of the best.
A few months later, he finally feels ready to fish.
The next day, he heads out on the lake in his new boat with his fancy rod and wealth of fishing "experience" built up over the last few months.
But six hours in, nothing. Not even a nibble.
What happened? Turns out, the second fisherman had already sucked the lake dry.
On day one, the second fisherman grabbed the first shotty rod he could find, sliced up a hot dog, and went out to the lake.
- The first day, nothing
- Second day, nothing
- Third day, nothing
- One week, nothing
But on the eighth day? His first nibble.
And every day after, he honed his technique.
He found a baiting technique that worked a bit better. Or a new spot with a few more fish.
And after three weeks of iteration, he found the winning combination.
Before long, he was hauling in hundreds of fish every day. To keep up with his daily haul, he hired a small team to help him. And from there, he opened a restaurant with fat margins to sell his fresh fish.
And after that, he opened a fishing school to teach others his craft.
He did all of this while the first fisherman sat around gathering gear.
Sure, the first fisherman felt productive. He was "learning" after all, right?
But there was one difference: he understood the cycle of adaptive planning:
Accept • Adapt • Action
Every day, the second fisherman had an idea of something that might work better. And he went right to the market to validate his assumption. If it worked, his strategy improved. And if it failed, he learned something new.
The moral of this story? Embrace the c’est la vie mindset and act as quickly as possible! It’s time to get back on the road and start fishing!
"Life is really simple, but we insist on making it complicated."
Confucius
Planning in Practice
The second fisherman embraced Agility Planning, proving there are practical steps to integrate flexibility into your goal-setting routine, ensuring that your objectives are ambitious and adaptable to the unforeseeable twists and turns of life and business.
- Differentiate Between Plans and Goals: Another way to get more comfortable with ambiguity is to realize that letting go of the plan isn’t the same as letting go of your goals. Being forced to change your plans doesn’t lessen your chances of success.
- Set Goals with Built-in Flexibility: When setting goals, plan for potential changes. This could mean setting broader objectives that can adapt to different circumstances or including milestones that can be adjusted as needed.
- Regular Goal Review Sessions: Schedule monthly or quarterly sessions to assess your goals. Use this time to reflect on your progress and make necessary adjustments.
- Develop a ‘Plan B’ Mindset: Always have alternative strategies in mind. If one approach to achieving your goal is blocked, be ready to switch to another plan.
- Embrace a Learning Attitude: Treat every challenge or change as a learning opportunity. This mindset will help you adapt more easily to changes and will also foster personal and professional growth.
- Seek Feedback: Regularly ask for feedback from peers, trusted advisors, or mentors. This can provide new perspectives and ideas for adapting your goals.
- implementing these steps and utilizing the suggested tools and strategies, both individuals and organizations can effectively incorporate flexibility into their goal-setting processes. This approach enhances the likelihood of achieving goals and ensures that the goals remain relevant and aligned with changing circumstances and growth opportunities. In my view, agility planning is one of the important aspects of wealth planning with clients, as it can be used in all elements of life. When we face impediments in our planning, we must accept, adapt, and take action.
“In preparing for battle I have always found that plans are useless, but planning is indispensable.”
General Dwight Eisenhower
Navigating the Path Ahead
Embracing flexibility is not a deviation but a strategic navigation through unpredictable challenges. This adaptability is critical to growth, allowing for resilience, creativity, and the ability to seize unexpected opportunities. You’ve learned the significance of altering your plans while keeping your ultimate goals in focus. This isn’t just a strategy; it’s a transformative approach to keeping your ambitions vibrant and achievable.
Take this knowledge into action.
Remember…..despite imperfections in life, extraordinary outcomes are achievable through adaptability and resilience. Each adapted plan brings you one step closer to your dreams and aspirations. Embrace the power of adaptability in your pursuit of goals and watch as you transform into a stronger, more versatile individual capable of overcoming any obstacle. Your ambitions are not just dreams but attainable realities made possible through flexibility and persistence.
As we cruise into the week ahead, know this: our lives will never be perfect, and our path will never be smooth sailing, but the journey can be extraordinary.
The next time you hit a rough patch in your day…don’t wait for a fresh start tomorrow.
As Taleb has said, “The best way to verify that you are alive is by checking if you like variations. Remember that food would not have a taste if it were not for hunger; results are meaningless without effort, joy without sadness, convictions without uncertainty, and ethical life isn’t so when stripped of personal risks.”
Be well and enjoy the moments,
Derek