Multi-Unit Franchisee Magazine Issue II, 2012 | Page 76

InvestmentInsights
By Carol Schleif

Which Way Forward?
3 suggestions for a brighter future

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couple of years ago, I went through an exceedingly challenging period in my personal life, where
the path I’d been on for several decades proved
flawed, and I had to figure out how to pick up the
pieces and move on. The status quo had become unacceptable,
even though the way forward was unclear. Just then, a friend reminded me that “Sometimes the only way out is through”… no
matter how frightening, frustrating, and confusing that path is.
It strikes me that most developed economies are in that
very same spot right now. The path we’ve been on—debt accumulation, deficit spending, entitlement and instant gratification mentality, and living way beyond our means—is faulty, but
which way forward? Indeed, the pendulum has swung so far
into uncharted territory that there are
no equivalent periods in history to give
us a hint at how to dig ourselves out of
the mess we’ve created.
The extremely heightened volatility
in the markets in 2011 was at least partly
caused by an underlying acknowledgment of this conundrum. While investments should be made based on a host of
fundamental factors, investors have been
preoccupied for many quarters about the
seeming intractability of global issues.
The frustrating thing is our fate in the
near term seems much more tied to political outcomes than corporate, economic, or fundamental ones.
But all is not lost. Like so many processes in life and in nature, this period of frustration is needed to set the stage for the
next act. I’m sure the transition from agricultural societies to
industrial ones wasn’t angst-free either. I’m entirely convinced
that if each one of us does some small part, we can successfully
navigate through these times to a brighter future, too. How? For
what they’re worth, here are a few of my own personal suggestions. I’d love to hear yours.

dividends also tend to raise them periodically—which allows
your income stream to stay at least partially ahead of inflation.
Focusing on high-quality, dividend-paying entities that do business around the globe seems like