We all operate under a set of assumptions and think of certain realities as pretty much self-evident. Imagine an investor: In their world some assets are considered ‘safer’ than others. State securities by large developed nations are considered to be among the safest investments you can make. Their reputation is based on past performance, and the idea that these states will never default on their loans.
Now, this might be true for the short and even medium term, but for how long can the investor afford to just check the mental box and say ” this truth will not changethis security will never default”? This is of course the reason that a prudent investor will adjust their portfolio when there are shifts in the economy that can be seen as impactful to the investments.
And in exactly the same fashion we should always examine our business models, our products and the ways we work. How long will the growth of mobile last? Will Youtube ‘always’ be the video site with the most traffic? Did you know that the iPad has only been around for 4 years? What will come after it? If you are not alert, you might be left with a ‘bad security’…
