Gen One Legacy

What Benjamin Graham Can Teach Us About Investing when the World is Falling Apart

Peter Donisanu

Lately, it feels like we're staring into an abyss that makes even the most seasoned investors want to get out of the markets.

It feels like there's a lot that's going wrong with the world right now, and many things are quickly coming to a head. 

That's because, among many developments, the Middle East has once again become a flashpoint for geopolitical tensions.

 

Now, conflict in the Middle East is nothing new for the seasoned investor.

 

In fact, these uncertainties have largely become a typical part of the investing narrative for the past few decades.

 

But with that said, something FEELS different.

 

And now this change in sentiment comes as the US is at risk of being pulled into another regional conflict as it rightfully supports its close ally Israel following the tragic terrorist attacks in early October.

 

Now, on any other day, this latest military ramp-up likely would be just another typical day in the region.

 

But things are different now than where they were over two decades ago.

 

That’s because the US is already fighting a proxy war with Russia in Ukraine, while the potential for a conflict with China in the Taiwan Strait increasingly feels less like a matter of "if" and more of "when."

 

And why does this matter?

 

Well, such an outcome could potentially leave our country exposed to three simultaneous theaters of war at a time when trust in the media, trust in our politicians, and, most importantly, trust in our neighbors and our communities is plumbing all-time lows.

 

In many ways, it feels like we're staring into the abyss of calamity that's coming at us from all directions and society appears to be coming undone at the seams.

 

So then, what should an investor do at such a time of instability and uncertainty?

 

Should you move to the sidelines and wait until things settle down before risking more of your hard-earned wealth in this market?

 

Well, the simple answer here is a resounding "no."

 

In fact, while things feel different, they also appear eerily familiar.

 

That’s why one of the greatest investing minds, Benjamin Graham, likely would argue that now is the time to strap yourself in and focus on your disciplined investment strategy.

 

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