Does our ‘ism’ impact our wealth?

I used to love looking through these ‘View-Finders’. 3D images of ET and Raiders of the Lost Ark, all while listening to the story on scratched record. Lost in the narrative, I forgot I was in my PJ’s, sitting on my 1970’s shag-carpeted bedroom.

Our worldview can be just as mesmerizing. Some “isms”, ideologies, and world views, may offer better returns than others. Timing the ideological trend-market for the win?

Meanwhile, I’ve noticed a lot of people worried about an imminent share market correction. It’s not unusual to see the odd dip, but this one’s dipping during an uncomfortable time for some –  If you don’t like a certain president right now, it’s a valid concern.

Our ‘isms’ are powerful forces. The shift from ‘left’ to ‘right’, for example -it’s genuinely the end of the world, for many. Even though somewhat plausible [yet made up] studies suggest: Doom-scrolling echo chambers ultimately leads to sub-optimal investment decisions.

Even central bankers struggle here. Could this be part of the same story?

Capitalism, socialism, libertarianism, or populism (list goes on): Our world view affects our financial behavior, and ultimately dictate our results [investment returns].

 

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Let’s wind the clock back a couple weeks first – As of early March ’25, crypto markets including Bitcoin, and share markets including AI-powered tech stocks, have been falling.

What’s going on?

One answer is this – It’s the end of a 50-year ‘easy-money’ hangover finally hitting a wall. Another answer is this – If you suspect markets are occasionally manipulated by design, then imagine big funds and nation state treasuries moving markets lower, just to scoop up assets on sale. Or what about this one—you might think we’re in a massive transition as a world society…Last one – citizens of every nation are rising up and pushing for higher productivity out of government. ‘Tax the boarders instead of us, for a change’. Inflation…made…angry…now…your turn.
Messy markets pullback, blending conspiracy with consequence, and a de-globalised global recession deepens.

These are significant events, and the only certainty, is more volatility. Keep in mind fast price changes are also a sign of strong returns.

Whatever ideology, worldview, or ‘ism’ we subscribe to, it colors how we operate in the world, and it flavors our investment decisions. If we’re not careful, we can become infected with a ‘mind-virus’, with signs and symptoms including, but not limited to, intolerance, poverty, and a sad life.
OUCH!
But why does all this matter?
Because at the very least, an “ism” might quietly steer us towards greater uncertainty of returns.
Think about property, for example: On one hand you probably want rising house prices (if you’re a home owner, or a capitalist). Instead, you might prefer prices to fall (for your children, or because you’re a socialist). The group that gains the most influence, plays a larger role in determining future property prices.
Let’s consider something less sexy, but still important.  Environmental, Social, and Governance (ESG) investment funds or investment style (aka: socially responsible, or ethical investing). It’s been a darling for the investment industry, marketing the concept of ‘investing and doing good’. Wow! Sign me up! No more greed-guilt.
People are changing their views on these things. Sure, it’s what those on the ‘fringe’ care about. Still, crumbling, over-cooked apple pie crumbles from the outside in. 
People are also changing their views on Bitcoin, climate change, geo-politics, and left-wing ideologies…I’m not saying it’s right or wrong – but it is right or left, for most people. Changing views like a pendulum, with more violent swings each time.
So are ESG-tilted funds likely to under-perform? It’s blasphemy even thinking this!
We don’t have to want this for it to be true. BlackRock changed their views on Bitcoin when they saw the tide turning. What happens if the masses start believing oil and guns are more ethical than electric cars?  Will they phase out ESG? 
In the same way propaganda subsides after the war, the re-election of Donald Trump could have been the tipping point, but there’s a battle going on still that we don’t understand yet. Mainstream media, already breaking down, can’t distribute the narratives required to feed the ‘isms’ we subscribe to. 
So if “Orange man bad” drove you to dump stocks in 2016, you missed the S&P’s climb—history might echo now with Trump’s big tariff announcements, too. Then again, it might not. If you’re having trouble seeing both sides of this, welcome to humanity. Mind the “ism” in the ‘View-Finder‘.
Building new wealth for the new world, demands an imagination around what the new world actually looks like. What we believe determines our outcomes, in life and in wealth. Our stories shape our bets, and when we learn the market doesn’t in fact care about our perspectives, all we’re left with are the ideological bags of yesterday.
So, what’s the message here?
Diversify—not just across assets, but across your own biases. ESG might still fit your investment strategy, but ask the question – what if one day, it’s popular to reject these ideas as ‘old-fashioned’?