Investing is an act of faith.
Faith in the future.
Faith in the underlying concept of capitalism.
Faith in humanity.
Without faith, the act of investing becomes very hard.
Right now, it is getting increasingly hard to have faith in the current system, leadership, and structure. It seems that every day we get a new reason to not believe.
So what is left?
The basic belief in the goodness of people. The notion that human beings will figure out the best way of organizing themselves and their capital (financial & human) and putting them to the highest and best use. The faith that if the current system does not work, we will collectively find a way to change it.
The belief that good people will rise to the challenge and do good things.
It has turned out that this basic optimism has been the only realism.
What is our alternative?
We can assume that no one can be trusted. That we have finally found a challenge we cannot overcome. That this is the end of capitalism.
We can chose to be pessimistic.
So far, pessimism has never turned out to be correct. Assuming that we will not find a way to deal with this issue would be irrational. That assumption has never turned out to he correct. In fact, you would have to ignore the weighty evidence of history to get there.
Plus, it is a terrible way to live.
