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- Remember the Positive!
Here at HX Research, we often talk about the psychology of investing.
Given the complexity of human emotions, knowing what you should do as a trader and investor is one thing, but it's another battle to execute it.
Successful trading and investing depend not only on knowing the right move but also on putting yourself in a position to make it—hopefully without too much effort.
That's why understanding the impact of psychology on decision-making is just as important for successful trading as it is for success in every endeavor.
One of the popular beliefs that troubles us – and we think affects the economy and investing – is the perception that Americans have seen living standards fall for the past 30 years.
Anecdotally, we may remember the "simplicity" of 30 years ago. Still, that belief doesn't account for the tremendous technological advances and conveniences that have completely changed every aspect of our lives.
Life is now a lot easier, and we can do many things more easily than we could 30 years ago. Once impossible things are now available at the touch of a button!
We found a recent articlethat examined the data on this concept, and in this issue of HX Daily, we're sharing some of the most interesting points. This gives some much-needed perspective on how the world is a better place than before...
1. We are eating more fresh fruits and vegetables
Growing up, I remember going to the grocery store and seeing a sparse selection of fresh fruits and vegetables, especially depending on the season.
Today, I can go into my local grocery store and choose from 50-plus items in the produce section. If I go to a fancier store like Whole Foods, it might be double that!
The stuff – despite being more expensive recently – is also surprisingly affordable.
Accordingly, we have been eating more of it. Look...
There's some bad news for citrus and potatoes, but we see big jumps in everything else.
If you also want to see the difference in availability and travel internationally, you'll see a much more limited selection.
2. The worst diseases are killing us less.
Seventy years ago, when someone died of cancer, they often didn't even know it was cancer.
Think about the massive improvements in medical care we've seen across the past one hundred years, especially across the past 30 years.
Historically, the two biggest killers of Americans have been heart disease and cancer. Here are some data points that show how those numbers are dropping...
We can debate "quality of life" all we want, but being alive is a prerequisite—and many more people are surviving today!
3. Another big killer is declining.
Beyond natural causes like heart disease and cancer, one of the other top killers of Americans is car accidents.
Do you remember when seatbelts were optional? Or when we didn't have power steering? I remember my parents having to turn the wheel ten times sometimes... And doing that in the snow? Forget about it!
But cars have been getting safer for Americans over the past 40 years. Look at the chart below...
Empire Financial Research founder Whitney Tilson and I have written a ton about the impact that autonomous vehicles ("AVs") will have on society – including safety – and we think these numbers could fall another 90% in the next few decades!
4. The cars we have are better and more affordable.
Again, while cars may have become more expensive in the last couple of years, the long-term trend is well established—they have gotten better while also becoming more affordable.
My personal favorite is the rear-view camera. We first had one in 2019 when we moved back to Arizona and bought our new cars. What a massive improvement over what we had to do before!
Here is some data to consider...
Again, cheaper and better cars aren't necessarily going to save humanity (although they are saving lives), but considering how much time the average American spends in a car, they are a real improvement to the quality of life.
5. Climate change is real issue, but progress is being made.
Without wading into politics, we think human activity heavily influences climate change. However, the opportunity to prevent dramatic climate change expired decades ago, and now the only real option is to prepare rather than prevent it.
Still, there has been a massive improvement in emissions made in the U.S. Look...
Because of cheap natural gas and European policy decisions, the U.S. is doing much better on this measure than a large number of European countries.
6. We are spending more time with our kids.
As a father to an 11-year-old, 7-year-old, and 2-year-old, the following chart is my favorite one...
While we have more nonworking time than past generations, we're also shifting priorities.
Generational trauma is a massive contributor to problems later in life, and parents spending time with their kids is a significant factor in preventing it.
Check out this chart...
I get it. In many ways, things certainly seem ominous out there.
But when everything feels terrible and the market suffers another significant drop, take another look at these charts to keep some perspective. Step away from your computer and spend time with your kids, eat some fresh fruits and veggies, drive your fuel-efficient car, and more than anything else, remember to stay positive!
Have the last 15 months of the markets been leaving you feeling disinterested? HODL leaving you limp? YOLO leaving you flacid?
Well - we have the solution - the HX HARD MONEY PODCAST! It is back baby!
Join Enrique and Matt Saincome as they catch up on life, Tesla's driving you to Chick-Fil-A, Bitcoin and some crazy f*cking idea Matt has about an ugly Chinese fruit.
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