Our collective mood is souring, particularly in light of falling wages, increased competition for jobs, portfolio (net worth) depreciation, and daily news about politics, terrorism, and business corruption. Where’s the good news?
As a
former professional athlete, I embrace the notion of competition, and all that
it implies. But I shudder to think that
the feeling of disconnect we sometimes feel from others is borne from a
struggle to maintain individuality. At
all costs, we are taught to succeed at the expense of others. We feel threatened by those who have what we
want, or wish to have what we have. The
benefits of our economy are bountiful, yet we feel averse to collaboration,
sealing our destiny by our own efforts, not those of the team.
For
what? Respect, money, fame? Is it better to be different, or difficult,
than to cooperate?
Although each of us may have different empathies,
different leanings, the variations don’t surpass the level of being human, the
capacity to experience the same basic emotions and sensitivities.
In
business, everyone searches for an advantage.
Not often enough, however, do they distinguish between projects that
“get it right,” which devote resources to a common good. Those who can sort out the complexities of
tough issues are more likely to generate not only profit but good will, as
well. Those firms which understand the dynamics
of inclusion and moral good leave a longer-lasting footprint on global business
and society.
Quick,
think of a name of a company that you believe leaves such a legacy.
Most
positive moral qualities are also associated with good earnings and strong
share valuation. Although a “feel-good”
test is not a strict investment methodology, it is a good adjunct to any
science we might impose upon global markets.
Closing the gap.
Although
corporate Darwinism is the essence of trial and error capitalism, there are no
doubt other social imperatives which lead to success. As I mentioned last week, demographic shifts
create a needs-based capital structure that can cure diseases, build scientific
advancements, educate a citizenry, remodel infrastructure, recreate technology for
our times, and change a psychological dynamic of inertia to momentum.
Concomitant
with such choices is a need for strong government, transacting fiscal policy to
match the will of the common good. The potential
to shift a capital structure lies either with the willingness of the private
sector to do so, or a politico that sees the financial and social benefits of making
it so. In either case, fostering political rivalry
does little to achieve either goal.
As a
portfolio manager, it is exciting to think of the potential in alternative
energy, biosciences, hydroponics and agriculture, technology, etc. We have the power to enter a world of
plentitude and transformation. The
numbers can be either “smart” or despicable.
The benefits can be too numerous to quantify.
None
of this means that the global marketplace is about to take off. Granted, we are not nearing a global
collapse, but neither are we laying the financial or psychological foundation
for shared benevolence. Dysfunction, and
strife abound. The sluggishness we feel
is by our own making.
The
world is rich, in culture, resources, talent and hope. Unfortunately, we also have an abundance of
predators building their own exit strategy.
I have hope that the reluctant become the strong, and embark on a
collective hunt for prosperity whose psychic and remunerative reward generates
the next secular bull upleg.
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