Nothing is Unprecedented
I will get calls from clients from time to time worried about the future. They are worried about the state of the economy. They are worried about the political climate. They are worried about the status of the country.
And then this word pops into the conversation – “unprecedented.”
“We are living in an unprecedented time,” they will say.
My response is always the same, “unprecedented compared to what?” What is unprecedented?
Is our inflation rate unprecedented? Not compared to the late 70s and early 80s.
Is the geopolitical climate unprecedented? Not when one looks at the US involvement in war—Korea in the 50s, Vietnam in the 60s, Iraq in Afghanistan throughout the 2000s. Even when the US was not involved, there was the dissolution of the Soviet Union, Chinese aggression throughout the past several decades, the constant conflict between Israel and its neighbors, and the economic collapses of even European countries like Greece.
Is the United States political rhetoric unprecedented? Not when we remember the election dispute between George W. Bush and Al Gore, the red scare and McCarthyism, the Watergate scandal, and all the way back to our founding fathers dueling each other over minor disputes (“Number ten, places, fire!”).
The current conflicts and reasons for worry always feel worse while they are going on. Somehow when we look at history, it never feels as bad as what we are going through right now. In fact, our country’s history often has period remarkably worse than our current situation.
Our country, economy, and investment markets have been resilient over decades. Of course, history does not guarantee future results. However, seeing where we have been can provide a hope that we will move through any period of worry.
Nothing is unprecedented.