This post reflects a core belief of mine about life and investing. But first, let me ask: What do you think is the most important thing happening in the world right now?

Less than a week away, the election might be top-of-mind.  

Raging wars in the Middle East and Ukraine deserve consideration. 

Still reeling from recent storms, millions fear another hurricane brewing in the Atlantic.

Those are worthy answers and certainly dominate media attention, but I have a different take. The most important phenomenon is the collective, incremental improvement in countless fields. These little bits of progress, unnoticeable individually, will compound over time to create a vastly better future. 

Skeptical? Let’s see if I can change your mind. 

“Things broadly got a little better” will never be at the top of your favorite daily publication even though it accurately describes most of human history. The world is gradually progressing, but we fail to realize it because we’re at peak awareness of daily setbacks. 

We take it for granted that global economic prosperity is at an all-time high. Have we ever stopped for a second to celebrate that? I get ‘90s nostalgia, but GDP per capita has doubled since then!  

Where has all that wealth gone? Surely you hear about inequality, which is a real issue, but do you realize that the share of people living in extreme poverty has declined 77% since 1990? Do you think you’ll even hear about it when (not if) extreme poverty is eradicated?

200 years ago, nobody had democratic rights. Now, billions of people do. 

In 1960, more than half the world was illiterate. Now, 87% of adults worldwide can read. 

How much do you think the United States’ carbon emissions per capita have risen since automobiles became commonplace in the mid-1920s? Trick question. They’re lower today.

I could go on: Child mortality rate. Life expectancy. Share of the population with access to clean water, electricity, and the internet. Death tolls from infectious diseases and starvation. Mortality rates from non-infectious diseases like cancer. All of these are heading in the right direction because of hardworking people striving for incremental improvements. It’s a sad reality that we’re too preoccupied with daily negativity to notice. 

It’s fair to recognize the problems of our world and it’s constructive to discuss the best ways to solve them. But I fear that many people are losing the plot. The story of mankind is one of optimism, resilience, and progress.  

Summing up my life and investing belief: Gradual improvements are hardly noticeable, but compounded over long periods of time, the results are undeniable. It’s as true in investing as it is in economics, education, technology, physical fitness, and relationship-building. As long as people all over the world continue to wake up each morning ready to work for a brighter future, our positive trajectory will continue. Invest accordingly. 

To borrow from Ray Zalinsky, Zalinsky Auto Parts: “I’m bullish for hardworking investors because that’s what I am, and that’s who I care about.” 

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