May 13, 2024
In his 1859 novel, “A Tale of Two Cities,” Charles Dickens wrote, “It was the best of times, it was the worst of times.” He may as well have written that about today.
We’ve heard from many sources how measures of net worth, stock prices, and housing values are at or near all-time highs. The same is true for economic activity and air travel. You can even earn a staggering 5% yield on cash.
It’s like a redux of the Roaring ‘20s. You’d think people would be happy. But are they?
Many other sources show how drug overdoses, homelessness, and food stamp usage are at all-time highs. Inflation has been steeper over history, but it was quite high not too long ago, and we might get more.
The national debt is climbing every day to new highs. And we’re reminded often of wars around the world.
Perhaps these counterpoints are driving collective unhappiness. Despite a rocketing stock market and rock-bottom unemployment, things aren’t as good as they seem.
Of course, perspective matters. You can choose what to focus on, whether it’s positive or negative. Some folks complained loudly about the national debt in 2000, when it was a fraction of its current level. Luckily, we haven’t had many bad consequences from that yet.
Plus, things could always be worse.
Inflation could rise. Mortgage rates could top 9% or more. There could be more wars or another credit crisis.
So, things are pretty good right now. But the experienced among us know pain could be lurking around the corner.
Some of the best advice I’ve heard is to save while interest rates are high. A certain 5% yield from money markets beats an uncertain 9% (or -9%) from stocks.
Be happy that’s something you can take advantage of now. It could be gone soon.