The Long View For Scrooge McDuck Investors

I write this article in mind for those of you who have your wealth primarily concentrated in broad-based index funds, or have created portfolios that are so totally diversified across sectors and industries that you have taken the Scrooge McDuck approach to investing. Instead of focusing on the success of certain companies to deliver returns, you have chosen to rely upon the general growth of economic activity to build wealth.

When events like the financial crisis, the sequester, Brexit, and so on occur, people pause and wonder: What if the post WWII boom in the global stock market was the result of a perfect tailwind consisting of rebuilding, population growth, global trade advancements, and rapid technology advancements that delivered returns far above what can be expected over the coming twenty to fifty years?

Even if global GDP growth slows down, it does not automatically follow that an investor’s returns must … Read the rest of this article!