Change. Many people are scared of it. Even so, it is something that is inevitable in life. This is the first official business day of the New Year (at least in my industry), so what better time to think about what the New Year is going to bring.
In my business, and I will keep this short because it’s boring, the Federal Reserve has indicated that they are going to lower the Federal Funds rate (we call it the interest rate) at least three times over the year. When the Fed does this, that is usually (not always) a sign that they have slowed the economy to a manageable level and it’s time to let the market take over. This is one reason why we think this year will be a good year to own stocks in your portfolio. That is a change I would be happy to see this year.
Change, I believe, is something to be embraced. History shows that those who resist change eventually become lost to history. Instead of working against the tide of new technology, we should embrace it and learn how to use it for the betterment of mankind. Technology is something that is, particularly now, ever changing. Humanity used to go centuries without innovations. They happen all the time now.
The reason people fear these changes is because they can’t control them. These changes bring about new things that they don’t understand. I have some advice though and it’s not financial: If you can’t control it, then the only thing you can control is your reaction to it. So make the conscious choice to do something positive with whatever that change may be. Your attitude is something over which you always have control. Choose to be positive, optimistic, curious, and above all, kind to each other.
HAPPY NEW YEAR!
Brian