We always found a way to overcome our deepest difficulties



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The news of the past year has been horrific. The COVID-19 pandemic has struck tens of millions of people around the world and caused hundreds of thousands of deaths. Aftershocks from the 2020 presidential election continued to cause unrest, culminating in violence on the U.S. Capitol on Wednesday. It is a scary moment for the country.

And yet, in the eyes of many, Wall Street appears to be in its own bubble, immune to the violent unrest in the nation’s capital. Stock markets hit all-time highs Thursday morning, continuing a wave of hatred that has persisted through an extremely long coronavirus crisis, months of economic suffering and growing division not only in the United States, but around the world .

This disconnect between Main Street and the world of investors is troubling. If recent events have made you angry, upset, disheartened, scared, or just ready to put your hands up and hide – trust me, I understand. I get pretty much all of these emotions thinking about what my country is going through right now.

National Mall as seen from the Lincoln Memorial, showing the Washington Monument and the near full moon.

Image source: Getty Images.

But one of the basic tenets that unites Americans is the idea that we can all aspire to build a better future for ourselves and our loved ones. Investing is a critical part of finding the financial success needed to make this dream come true. I think it’s more important than ever right now to have and stick to a long-term financial plan that includes investing in stocks. Our common goal of achieving financial independence is something we can share even when we have disagreements in other areas.

Overcome the challenges of history, one by one

This is not the first time that Americans have gone through difficult times. As my former Motley Fool colleague and bestselling author Morgan Housel wrote last year, we’ve always found a way to overcome our deepest difficulties. Quoting a columnist from the Depression era and his experiences of arguably the most economically devastating era in US history, Housel’s lesson was simple: we’re going to get through this.

The steady growth of the US stock market for more than a century has been a major driver of economic prosperity around the world. She has been the envy of other countries around the world, many of which have not been able to replicate her success despite their best efforts.

During this time, we have been through almost every type of crisis. The Great Depression created massive unemployment, but the nation found a way to put people to work. World War II threatened the ideals of the United States and much of Western Europe, but sacrifice and hard work led to a victory that set the stage for a massive economic boom.

After the assassination of President John F. Kennedy, many feared that the ensuing confusion would lead to an attack by Cold War enemies of the United States, and the stock markets fell sharply on the news. Still, an orderly transition of power took place, and markets continued to boom at all-time highs for several years after the event.

Even large-scale violence on our own soil has proven to fall short of the resilience of markets. The September 11 attacks closed the market for days and left the nation shocked but adamant in its resolve to recover. Investors have seen the results of the monumental gains in the stock market over the past 20 years.

We will come back through this

Each of these events has tested our collective resolve. Each time, we came out stronger.

This strength has manifested itself in the success of the stock market. Even when some sectors of the economy were under stress, others took over and found ways to prosper. Over the years, the stock markets have continued their inexorable advance.

Plus, these experiences have shown the real value of high quality businesses. Companies that had strong leadership, innovative products and services, loyal customers, and a commitment to do their best have reached the top. Their stocks outperformed the market in general, and those who dared to invest in their stocks benefited.

American flag waving in the sun

Image source: Getty Images

The stock market will continue to rely on our ability to unite towards common goals. One of the reasons America’s stocks have performed so well throughout history is that the world has honored the nation’s commitment to political stability. The American system of laws and institutions is the pride of the world, and has endured and adapted for more than two centuries. We still have work to do to ensure that this system continues to adapt and ensure the benefit of all.

One thing is certain: we will be okay. Part of how we will do this is to find common ground. The promise of financial freedom for all is something we can all come together on. As investors, we don’t just invest in stocks. We invest in businesses and in our peers. We are investing in a better future. And right now, a better future is the most important thing we can achieve.



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