The way back is closed, only
the path forward remains open
There are different types of change
It’s a trite phrase to say, “change is the natural order of things.” It sounds too much like an excuse. Worse yet, it serves to mask the different types of change – and how the best approach for dealing with one type of change is the worst for another. Different types of change are distinguished by two attributes:
- Speed or pace
- Smoothness or direction
Conclusions and next steps
If interest rates rise for the next 40 years, bonds will have embarked upon a path remarkably different from the one just completed. Managing such directional change by continuing to do what worked so well in the past may be the worst possible approach. Solutions exist, but they require starting with the proverbial tableau blanc, looking into the future for answers as to what will harmonize best with a different set of opportunities, risks, and rules of the game.
What is that menu of possible investment solutions? The solution that is most appropriate for your needs and circumstances can only grow out of a meaningful discussion.
