Responsibility
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Responsibility
Many people, especially those in positions of enormous power, like to take credit for bull markets even if over the sweep of a bull market they have had relatively little to do with it. The current bull market, now in its 11th year, is no exception.
Responsibility for bull markets rests on many shoulders.
In the dark days of late 2008-early 2009, those who stepped up, including this firm and its clients, to purchase the shares of companies and thereby show faith in those companies are responsible for bull markets.
During the numerous bumps and bruises along the way, including a European debt crisis, the Brexit referendum, China growing pains, American political warfare, oil price plunges, those responsible, including this firm and its clients, held their ground and refused to be shaken out of their ownership positions.
Those who wake up every morning, including those at this firm, and come to work to serve customers, innovate products and services, and set examples for civility are responsible for bull markets.
Workers, who consistently divert substantial parts of their take home pay into workplace savings plans for their retirements, are responsible for bull markets.
Consumers, families, and businesses, who think carefully about their needs, review and interview providers of products and services that they need, and attempt to spend their money wisely, economically, and confidently are responsible for bull markets.
Parents and teachers, who patiently educate and enlighten their children about economies and job markets, who encourage them to pursue careers that utilize their skills and talents, and who support their children throughout the process, are responsible for bull markets.
Homeowners and property owners, who improve their homes and properties so that they maintain and enhance their values and modernize them for the future, are responsible for bull markets.
Optimists who see hope for the future and are willing to store their wealth in securities whose values are dependent upon future cash flows are responsible for bull markets.
Trading markets, that make it possible to quickly and efficiently move ownership from those who wish to exit to those who wish to enter, are responsible for bull markets.
Honest economists, who monitor the health of economies and report data to substantiate their views, are responsible for bull markets.
Central bankers, who evaluate empirical data and take action to provide national monetary stability, are responsible for bull markets.
Many others are responsible too. Even politicians in positions of great power. But when taking credit for bull markets, they should probably get in line, at the end, where they belong.
Leonard Golub, CFA
Fiduciary Financial Advisor