Collaborative Fund: Endless Uncertainty
The past few months has seen a rise in the concept of uncertainty. Investors may be waiting for clarity on issues such as inflation, the job market, inflation, Russia’s invasion of Ukraine, or any other issue under the sun.
Headlines reflect this concept often, even more than just a few years ago. But the past few years have seen record uncertainties, from a pandemic to election strife.
The bottom line is that uncertainty is always with us. The future can never be predicted. And whatever plans we make have to be flexible enough to contend with changing outlooks.
Attempts to track outlooks on uncertainty show that people are at their most certain about the future right before a major change. That’s a sign that investors need to be prepared to handle complacency.
When looking at the world today, the issue may not be uncertainty. It might simply be the idea that people are no longer complacent.
We saw that complacency when investors piled into shares of bankrupt companies over the past two years. Or into high-growth stocks going public at a rate that pushed valuations beyond the levels of the tech bubble.
With investors now acting less complacent, the world seems more uncertain. But given that it always has been and always will be, there will still be opportunities for those willing to buck the prevailing trend.