During strong market times like we experienced in 2024, or times of uncertainty, are you inclined to be more like a tortoise or a hare? As we begin another year, it’s a perspective worth remembering: meaningful growth is often measured over decades, not months or even years.
We find ourselves in a period where sentiment could be aptly described by Charles Dickens’ classic line: “It was the best of times, it was the worst of times...” Today’s narratives are seemingly contrasting.
It’s been termed the “greatest wealth transfer in history.” As the last of the Baby Boomers reach the age of 60 this year, and the oldest approach 80, an estimated $1 trillion of wealth has begun to change hands.
It has been said that “Time is the exponent that does the heavy lifting. The common denominator of almost all fortunes isn’t returns; it’s endurance and longevity.” As we look ahead to a new year, don’t overlook the impact of compounding and time on investing success.
One of our modern-day challenges is that technology has ushered in an era of instant communication and connectivity that seems to amplify awareness and sensitivity. There is never a shortage of negative news and today is no exception. Despite economic resilience and growth that has exceeded expectations, we may be distracted by new uncertainties.
In the summer of 2022, technology pioneer Bill Gates met with the team that developed the algorithm ChatGPT and left them with a challenge: “Train an artificial intelligence to pass an Advanced Placement biology exam...if you can do that, you’ll have made a true breakthrough.”