In the early to mid 1800’s there were approximately 7 million people that took part in the westward expansion after the Louisiana Purchase. Most of them left with grand dreams of future prosperity. However, the road to that prosperity was known to be long and arduous. They had a very important decision to make when deciding to move west. Do I purchase a team of horses or oxen to pull our wagon full of belongings?
The Horse was rather expensive, fast, and agile. However, they require a great deal of care to maintain and were prone to running off during the long journey. The Oxen were relatively inexpensive, strong, and dependable. However, they were slow. The pioneers realized they would be in harsh, unpredictable conditions for a prolonged period of time with little to no vegetation. Most chose the Oxen. Much like those pioneers with dreams of future prosperity, we have a similar decision to make.
The global economy has been slowing down for the past year. The stock market is in the midst of a bull market (perfect for horses) that started in 2009 but has been showing signs of slowing as of late (not so good for horses). The journey ahead is fraught with uncertainty. Yet, I believe, much like those pioneers, that the future holds great prosperity. Just as the pioneers chose the dependable oxen for their difficult journey westward, so too should we. The importance of finding investments that may be considered slow but dependable becomes more apparent during this stage of the journey.
I mentioned in previous pieces that the primary ingredient for growth is innovation. I firmly believe those innovations are coming, and are awaiting us on the next leg of our journey. Until then, we should rely on our dependable oxen to slowly pull us toward our destination. Nevertheless, when those innovations eventually come, they happen fast and require an agility in a changing world. Much like a horse...
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
