Humility, that low, sweet root, from which all heavenly virtues shoot. -Thomas Moore
I hope you are enjoying your summer and not watching the news. Seriously, turn it off. Last week, we spoke about tariffs and trade wars. This week, one of the most interesting (and not the least important) news items stems from physics. And I’ll get back to investments with talk about inflation and interest rates. But the theme remains the same: humility is good.
News from the World of Physics
This story, from the Wall Street Journal, I find astonishing. When I was in school, the “neutrino” was a theory, a way to describe a scientific phenomenon, explained as an infinitesimally small particle. It turns out, neutrinos are real. We built some big measuring device underneath thousands of tons of ice at the South Pole. And it was accidentally hit by a neutrino, which they traced back to a black hole far out in the universe. To me, this story feels like so much of the news today: far out. Enjoy the diversion. Email me if you can’t read it.
Astronomers stalk the wild neutrino from the South Pole to the far side of space. These ghostly particles may reveal a hidden universe of strange materials and energy.
We are a wealthy country in a wealthy world when we can spend that much time and energy to make a discovery this small—and this amazing—after such a long period of time. I can only imagine the humility of these scientists as they sat around for YEARS waiting for a blip on their computer screen. All in the pursuit of a theory—like last week’s theory about investing in a trade war—these scientists might have been way off.
As it turns out, they were right, and we’ve got little pieces of a black hole shooting through our planet right now…
Inflation and Interest Rates
Almost as far out as a black hole, interest rates are sucking up a lot of investment news headlines. Rates are still low—and a long way from “normal”—rising at an orderly but fast pace. This commentary from one of our research partners says higher rates and inflation are here to stay—and likely to continue to rise.
In times like these, you likely want to talk to your wealth manager. You may feel a compelling need to take action with your investments. Your guide will walk you through the things that matter, and the things that do not. Your guide will show you the pros and cons of changing your asset allocation, and the risks and rewards of different options.
Most importantly, your guide will bring you back to a conversation about your individual financial plan. You and your guide use the fantastic software we have at our disposal to see what the investment headlines mean for you. I think you’ll come up with an important conclusion: over your lifetime, normal interest rates have a normal effect. Well…there’s only one way to find out—give a call to your wealth manager!
I do have a bias—I know the limits of my knowledge. My bias is to help you stay invested in a diverse pool of companies in the USA and the world. Here, I believe, you have the best chance of achieving your best long-term, real-life rates of return.We are a team of advisors—we have different opinions, and you benefit from our opinion diversity, and our continual testing of our biases.
Let’s keep the conversations going! Give us a call!