I spend a lot of time thinking about human nature and psychology.

While the financial markets have changed dramatically over my investing career, one thing that hasn’t changed is that they ultimately reflect human activity.

Sure, there might be more quantitative strategies in the form of sophisticated computer programs and algorithms.

But the vast majority of the activity still comes from humans. And humans still oversee the computer programs.

Beyond the financial markets, human psychology influences every aspect of your life — business, friends, family, etc.

That’s why understanding trading psychology is beneficial for making money and leading your life.

Negativity Is Noisy, But Positivity Pays Off

As humans, we are biologically programmed to put more emphasis on negativity.

With the expansion of social media and easy access to information 24 hours a day, that bias has become overwhelming for many of us.

It's easy — in fact, it's human nature — to take the constant barrage of harmful activity and think the world is falling apart.

But if you take a step back and interrupt your body's reaction and look at the data, the reality is much different.

My argument has long been that we are living through the single best moment in human history. Yes, right now.

Even when something terrible happens, we are seeing the least suffering, the most enjoyment, and the longest overall life expectancies in human history.

I realize this message doesn't fit with what your body and social media want you to believe. But it's true.

I’m reminded of an article I read from Ben Carlson titled “50 Ways the World is Getting Better,” which went through data points showing how extraordinary these times are.

I won't go through all 50 points here, but I'll briefly mention some of my favorites...

• Human beings' life expectancy has increased incredibly in the past century and even across the last few decades.
• The likelihood of dying as a result of violence, natural disasters, disease, etc., has plummeted massively.
• Education levels have gone up dramatically almost everywhere in the world.
• The amount of time we have available for leisure has increased to an extent that would be fantastical to people a century ago.
• The number of people globally living in true poverty is a tiny fraction of what it was 50 years ago.

So why do I mention these positive developments in an investing newsletter? Let's get back to human psychology...

In many ways, things seem ominous out there. Believe me, I get it.

But if you let the negativity overwhelm your decision-making — as your body forces you to do — you’re much less likely to execute a sound strategy.

One of the most potent influences I have seen in investing, business, and life is the power of positive thinking.

That’s why I’m so committed to keeping an optimistic approach to the markets and life.

I look forward to helping make 2026 a great year for you. On that note, Happy New Year.