You deserve a cup of coffee


Today, I spent time with a cup of coffee and read a shareholder letter from Larry Fink, CEO of BlackRock.

Given any day, some investors are worried about the high level of spending on artificial intelligence (AI). In the past, new technological changes sometimes caused market downturns. But we may not be at that point yet.


One important thing is that the United States has the highest stock market participation in the world. About 60% of the population owns stocks, either directly or indirectly. This includes investments through mutual funds or retirement accounts like a 401(k) or IRA. Around the world, fewer people invest in stocks. They keep their money in bank accounts that earn little interest. They watch the economy grow but do not benefit from it as owners.


In financial markets, short-term activity has a purpose. It helps markets process new information, understand risks, and decide where money should go.


However, much of today’s economic anxiety comes from a deeper issue: capitalism is working, but not for enough people. Focusing only on short-term investing does not solve this problem. Long-term investing is more important. It helps countries build industries, helps people grow lasting wealth, and allows them to benefit from economic growth.


Markets work best when investors trust that prices are fair. This trust helps businesses raise money to grow. It also helps families invest in many different assets at a low cost, instead of depending on just one.


In the future, better technology and financial education can help more people join the market and benefit from economic growth. Technology may also make private markets like infrastructure and private credit more open and accessible to everyday investors.

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