Where is the world economy going? Is it going down the toilet? Are the days of sure and steady stock market growth over?
Or, will the economy continue to prosper like it has before?
There is some disagreement over this. Even our various MOBE mastermind speakers have conflicting answers to this question.
The truth is, no one knows. No one has all the answers and no one can predict where things are headed. It’s up to you to decide who to believe.
I share more of my thoughts about the future of capitalism in this video.
WARREN BUFFETT’S ANSWER
Warren Buffett is one of the richest people in the world, and is widely considered to be the world’s greatest living investor. His investments have averaged a return of 19% since 1965, which is more than double the market average.
Surely he can predict better than anyone else where the world economy is headed?
When asked this question, the answer he gives is this. He doesn’t try to predict the direction the economy is headed. He won’t make any predictions about interest rates and other macroeconomic indicators. Other far less credible financial commentators will, but he won’t.
Instead, he chooses his investments by looking at the performance of individual companies. He looks at their profit and loss statements and balance sheets. He studies their management and market performance.
The economy is too big to get a picture of, and too out of control to predict. Individual companies, on the other hand, are more manageable and easier to get a picture of.
DON’T UNDERESTIMATE CAPITALISM
Judging from the sentiment in the media, it would look like we are in a tough time. However, it wouldn’t be the first time. Stocks always seem to survive crises.
Think about the 20th century. Warren Buffett remarked that the United States endured two World Wars, the Depression and plenty of other crises, yet the Dow Jones Industrial Average rose from 66 to 11,000.
If you bet against capitalism, you will probably lose. It has a solid track record and it has survived the tough periods as well as the good ones.
The MOBE Platinum Mastermind is where the most experienced mentors in investing and asset protection share their investment methods with fellow members. To learn more about the Platinum Mastermind, click HERE.