Weekend Reading: Will the Optimists Triumph Yet Again?

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading geopolitical uncertainty market volatility Weekend reading geopolitical uncertainty market volatility
Weekend Reading

Watching or reading any news outlets at the moment might leave you feeling discouraged. The ongoing conflict in Ukraine, rising prices and market volatility all create the perfect recipe for pessimism, and what might seem more difficult to grasp is the fact that no one knows exactly what will come next.


Monitoring market moves: If the negativity has you feeling down, take a moment and read this article. There’s something to be said about a “glass half-full” mentality, and despite what is currently unknown, we still might be able to foresee a relative direction of where we're going, via the market. This doesn’t mean reading every expert’s prediction, but instead truly observing how the market reacts to unfolding events.

Author Barton Biggs is featured here based on research conducted in his book, Wealth, War and Wisdom. In it, Biggs focuses on how worldwide equity markets reacted to and anticipated World War II, and more specifically, how the UK’s stock market was able to make a comeback despite the bombing London experienced in May 1941. Then again, in March 2020 the market dipped, only to surge upward as COVID cases increased and fears of uncertainty spread amongst the masses.

Combat pessimism with positivity: We know the market is capable of rallying (take a look at what happened this past February 25), and over the long-run, optimists have always won historically. The bottom line is the market seems to be looking forward, and it’s becoming more efficiently optimistic in these modern times.