Don't be distracted by short-term noise

February 25, 2021 | Lori Livingstone


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The best way to truly build wealth is to focus on the long-term. Don’t be distracted by short-term noise.

The news cycle is dominated by short-term happenings in a complicated world where things change and new concerns pop up on a daily basis. The huge amount of information we deal with has the tendency to make us forget where we are in the longer-term market cycle that has been one of the very best places for creating and growing wealth over a very long period of time. The markets tend to move between long-term “secular” periods of growth and stagnation that each last about 16–18 years, with a whole cycle of about 35 years, or one generation. These long-term trends tend to be so long that it is difficult to remember what it was like from one cycle to the other, but in most cases, the long-term secular bull trends tend to last until the sentiment of the public and investors reaches very optimistic levels of “euphoria” and “irrational exuberance” that are very much still missing in today’s environment. We see the current secular bull period that began in 2009 as being at about the halfway point now with possibly some of the best market years still ahead of us.

 

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