A Bull Market Is Starting For 96% of Us

The United States represents 4% of the world’s population with 325 million people out of more than seven billion. The United States GDP is the largest in the world at $19.4 trillion, which represents about 25% of the world’s GDP.  But America’s stock market represents about 50% of the worlds’… based on size 

And yet if you live outside the United States, like 96% of the world, you might have a very different view of the past few years. 

Below is a price chart that JC Parets used this week to show that Europe might just be at the start of a bull market AND not the end. It’s a chart of the Euro Stoxx600, which is kind of like the S&P500 of Europe. And as you can see below, Europe has not been in a bull market for the past 10 years. In fact, Europe has been going sideways for 20 years. You can read JC’s entire article post right here.

The point is… many would not be surprised in Asia, Africa and Europe if the world STARTED a 10 year bull market. 

For American’s it might feel scary and dangerous and yet for the rest of the world, it would feel like… “FINALLY!”

It’s not easy for people to remove themselves from the center of their own investing. After all, one of the first principles all investors are taught when they start investing is to put themselves at the center of their own investing. 

But why?

The ocean doesn’t care about you or your age or where you live. Meaning, the ship captain isn’t asking ages or locations. S/he is looking at weather forecasts and determining if they should even be out on the sea. 

And yet this weird industry call money management thinks we should be at the center of our investing. They teach us our age and where we live matters most. 

The problem… it teaches people to think their age and location matters to the markets. 

Of course you matter to you. How could you not matter to you. But your age doesn’t matter to the market nor does your address.  

So if we see the stock market go up for another 10 years it might feel very different to Germans, Dutch, French, Brits, Swiss, Italians, Chinese and Japanese THEN it does to Americans. 

Again, if we are starting a 10-year bull market, the other 96% of the world might just be thinking, “finally.” 

Perspective matters. 

So as we sit at the end of 2019, see if you can start to notice your own perspective (read: your own bias). 

My offer to you is to do less. And learn more. 

Read fewer books but read them slowly and deeply. Read them twice. Read them once without underlining or wanting to remember or sound smart, just read it to appreciate the effort and insight that went into that book. And then read it again. But with deeper meaning. 

David McCullough asks us to slow down and learn about ourselves more. How? By reading less. And not more. Stay simple and go deep.

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

  1. So few words…
    “It is a predisposition of human nature to consider an unpleasant idea untrue, and then it is easy to find arguments against it.”– Sigmund Freud (Psychiatrist)
  2. Technology matters because it’s shaping (shaped) our leadership, behavior, health, relationships and wealth. Here is an interesting article by Vox Media that looks at 14 charts that explain tech in 2019.
  3. Thank The Fed…

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