The Sunday Drive - 11/27/2022
👋🏻 Hello friends,
Greetings from Saratoga Springs, NY!
Let's take it easy and enjoy this Thanksgiving holiday edition of our leisurely Sunday Drive around the internet.
In honor of the Thanksgiving holiday, please enjoy the Vibe of the Week... Earth, Wind & Fire's Gratitude.
There is so much that we all have to be thankful for. I am exceedingly grateful for my family who are my biggest "why", and for my friends, colleagues, and investors who have believed in me over the years, and continue to do so.
I'm also grateful for you, and the gift of your time and attention each week by reading The Sunday Drive. 🙏🏻
💡 Quote of the Week
"Friendship happens on the way to something else. If you "try to meet new people" it feels weird and forced. The more you aim for friendship, the more it eludes you. But if you aim to learn or achieve something with others, friendship happens naturally during the shared pursuit."
- James Clear
📈 Charts of the Week
Two charts this week.
The above chart shows that over a reasonably long investment time horizon of 20+ years, at least historically, equities have outperformed inflation 100% 💯 of the time. The same cannot be said for any other asset class.
The second chart shows just how dreadful bonds have performed over the last several years. After having an epic performance in the 2019-2021 period, bonds gave it ALL back in 2022.
I am of the belief that in the coming years, we will see bonds, i.e. fixed income securities, return to their historical role as just that - fixed income instruments whose purpose is to provide current income - not the volatility reducing portion of a total return focused portfolio that so many have become accustomed to over the past several decades.
In my view, stocks are where investors will continue to earn their real returns in the future (Get it? Inflation-adjusted returns). Cash will be used for actual volatility reduction and as dry powder to take advantage of equity investment opportunities.
💰 Financial Hits and Misses - In a complex world, success only makes sense after it happens.
We live in a crazy world. Consider the following story: A startup raised money for a business that operated in a legal gray area — and later became illegal in many jurisdictions. The startup subsidized its offering to attract customers. It encouraged customers to get into risky situations. The company lost money for years and was constantly hounded by lawmakers. And yet, the world's most prominent investors flocked to invest in it.
I'm talking, of course, about Airbnb. Once a company is successful, it's easy to forget how unreasonable it was to invest in it.
🤔 Your (Elder) Brain is Better Than You Think - Headlines, podcasts, maybe the whispered concerns of loved ones: far too much of what we hear about the aging brain fills us with dread.
Yet what’s missing from many conversations is insight about what’s awesome about the aging brain for us, as individuals, and for society at large.
💡 Collaborating Away - There's an assumption that four walls, a whiteboard, a table, some space, and a door at a shared address are necessary ingredients in the creative soup that is working creatively with other people.
🤗 The Coming Culture Peace - Excellent piece by Chris Best of Substack.
The drive to war is very human, but peace can also stir our hearts.
🙏🏻 To close out this Thanksgiving holiday weekend, I'd like to again say thank you to all who are reading this newsletter. I am so very grateful for your interest and support.
I hope you have a relaxing weekend and a great week ahead. See you next Sunday...
Your faithful financial provocateur,
If you enjoy the Sunday Drive, I'd be honored if you'd share it with others.
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