On the Precipice of History: A Look Ahead at the New DecadeSubmitted by Reby Advisors | Certified Financial Planners | Danbury, CT on January 24th, 2020
By Bob Reby, CFP®, January 24, 2020
This article originally appeared in the Winter 2020 Edition of the Reby Advisors Newsletter.
Happy New Decade! The last time the twenties kicked off, Americans, not having the benefit of hindsight, had no idea that it would later be named the Roaring Twenties for a booming economy that grew by 42%.
Nor did Americans know, in January of 1920, how the events of the next 10 years would alter the course of history. For example:
- the 19th Amendment granted women the right to vote (1920);
- Ford Motor Company reached a market capitalization of $1 billion (1924);
- Charles Lindbergh completed the first solo transatlantic flight (1927);
- Mickey Mouse was born (1928); and
- the stock market collapsed (October 1929), foreshadowing the Great Depression that defined the following decade and changed our politics and consciousness forever.
Talk about an eventful decade!
Fast forward 100 years, the world has never been freer, healthier, safer, more educated or less likely to suffer from starvation or oppression. That may be hard to believe, given the challenges society faces and the problems we see in the world today, but it’s true. More interesting research and data on these matters can be found at OurWorldInData.org - a great website that really puts our world in perspective.
Like our predecessors from 100 years ago, we cannot predict with any precision what the next 10 years will look like, but I think it’s clear that we remain on the precipice of history-altering events. Will the longest bull market in history conclude with a mild correction or with a crash? How will cryptocurrency, virtual reality, and artificial intelligence change the way we live and work?
Despite the inevitability of change, as the saying goes, “the more things change, the more they stay the same.” Accordingly, I believe that planning will continue to be the key to thriving in the coming decade: address the risks we know, embrace calculated risk as being essential to success, and plan for unforeseen breakthroughs and setbacks through diversification.
As always, we value our relationship with you and look forward to working with you in the 2020s!
To read the rest of the Winter 2020 Newsletter, click here.