The world around us is ever-changing.  As you’re reading this latest blog post, the world has changed and Humans are learning to adapt to this new world.  A change in behavior helps us to be better suited for the current environment.  

When we stop to consider a horrible event, say becoming paralyzed.  It’s easy to imagine how awful life could be going forward.  What’s interesting is that studies have shown that many people who live as paraplegics are happy and have adapted to the change or their “new normal”.

On the other hand, we can only imagine how we’d feel if we won the lottery.  The excitement an event like that could bring is only a dream for most of us.  Also interesting is that over time those “winners” are said to be just as “happy” (or unhappy) as they were before their “lucky day”.  Even though different, they’ve adapted to their “new normal” as well.

Adapting to Changes in the Economy

Adapting happens to companies as well.  Companies are run by people and so it only makes sense that they will adapt to change as well.

In the News today you’re overwhelmed with the pandemic, the election, trade wars, tariffs and so on. This represents changes in the economy and an ever-changing stock market that often reacts to these news reports.

The current pandemic has shown us how quickly humans can respond and adapt to change.  We are continuing to adapt to the world around us and companies are as well.  WFH or Working from home has become the “new normal” for many companies today as this would have been out of the question just a few months ago.  

After the election, possible changes in policy may pose a challenge for companies in the short term, but no policy or change will force companies to lose money forever.  Like us, they will adapt.

Choosing Your Perspective

Adapting to change doesn’t happen overnight.  It depends on the person, the company, or situation.  There can be a learning curve and difficulty when adapting to new rules, circumstances and lifestyles.

Speculators – people who only focus on the stock prices over a short time frame – change and surprise aren’t their friends and can be bitter enemies.  There isn’t much that I can do or say to help this group of people other than to encourage them to start investing and quit speculating.

Investors – people who invest in companies for the long hull – Surprise and change doesn’t worry them as much.  For sure there will be some short-term pain while companies learn to adapt but those changes can result in profits for the company and shareholders.

It is said that patience is a virtue and for investors, adaptation and change can make patience the most valuable investment you can make.

If you know somebody that you think would appreciate this blog, please feel free to pass it along.

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 investing involves risk including loss of principal.

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