For 250 years, since the beginning of the Industrial Revolution in the late 1700s, the world has been building up wealth like never before – so spectacular, it changed humanity. But, it’s been a messy affair; a few steps forward, and then a step back.

Stock markets, which are the economic scoreboard, have reflected this forward and then back dance. Corrections, when stock markets fall more than 10%, happen often, and bear markets, when stock markets fall more than 20%, happen regularly. Through it all, as world economies grew, investors built up wealth.

That’s all fine and dandy, wonderful history, but, there’s a problem.

In the down years, when things are taking a step back, it can feel really frightening.

Just think of some of the downturns we have lived through together: The Dot-com Bubble quickly followed by The 2002 Corporate Corruption Scandal, The 2008 Global Financial Crisis, The Euro Debt Crisis, COVID, War, Inflation, and now a Global Trade War.

Each time it feels worrisome, threatening; each time it feels like this time we’re in really big trouble; each time it feels like “this time it’s different”.

Sir John Templeton, investor extraordinaire, manager of the renowned Templeton Growth Fund, who for decades rewarded  investors with solid returns, often reminded investors, “The four most dangerous words for investors are, “this time it’s different””.

Since the United States was born, 249 years ago, “America First” has been a domestic debate that has ebbed and flowed. In 2024 “America First” carried President Trump to election victory, and he’s now pursuing it, as he promised American voters he would. Americans need to once again visit this national issue, only this time in a world of allies and enemies that are far more wealthy and powerful than when the U.S. ascended to world dominance after the devastation of World War Two.

Certain sectors of the U.S. stock market have been overvalued for a long time. True to the nature of stock markets, it takes an episode to cause a correction that brings markets back into fair valuation; this U.S. initiated trade war is providing that episode.

Sadly, this is a painful time for many people, but for our Portfolio Managers it’s a golden opportunity; they’re busy reallocating their investment portfolios by carefully selecting investment securities they believe will protect and grow our money.

It isn’t different this time. The world is evolving and developing, in its messy fashion, as it has for 250 years.