Scared Money
If you’ve been following the financial news cycle the past month, I wouldn’t blame you for being freaked out. The banking system is collapsing, the Fed has lost its mind, the Dollar is done, and a recession is just around the corner (Sell! Sell! Sell!). Factor in the general malaise in both the private and public markets, and it feels like everyone across the spectrum (with some exceptions, lol) has been infected with the Doomer virus. But while this is business-as-usual for traditional media, they’re not the only culprits.
An unhealthy dose of fear-mongering is coming from a cohort I like to call WIDs (Wealthy Intellectual Dudes). With too much money and not enough humility, this cadre of mononymous elites (Dalio, Sam, Burry, Ackman, Balaji, etc.) have taken the Cassandra stance to the next level. Not content with the old tropes - like overpopulation and nuclear war - they’ve jumped the shark into new(ish) territories of hyperinflation, government bankruptcy, and the decimation of civilization one paperclip at a time.
One could give them the benefit of the doubt and assume their goals are altruisitic, just trying to help humanity avoid an existential crisis. But pardon me, your humble skeptic, for not trusting the motives of the latest batch of secular Savonarolas. With no need for more money, the WIDs - just like the media - are trying to extract another precious resource: your attention. Their ultimate goal? Becoming a Thought Leader.
But here’s the fundamental error: A high IQ and an even higher net worth does not correlate with predictive success, even (especially?) if it’s happened once or twice before. A word to the wise (and the WIDs): Stop trying to predict the future, it’s impossible. It’s OK to prepare for chaos, but don’t waste time worrying. And definitely don’t liquidate your portfolio. Take a walk, play with your kids, have a drink. Relax. Every day is Sunday.
Devin Faddoul, CFP® is the founder of Adda Financial | Outsource your financial life. Focus on your real life.