Ah, January. It really is the best time of year. The sun is (mostly) out, the weather is warm, and while that also brings the threat of bushfires, it also seems to bring out the best in us. People just seem more relaxed. Happier.
Sure, there's the Christmas credit card debt to pay off, and maybe some Christmas Day arguments to apologise for, but those are small prices to pay. And, just for a little while, at least, life just seems simpler, right? We're a little less materialistic, a little more generous and a little kinder. It harks back to September 2000, when the Olympics were in Sydney. When Australians really did show the best side of ourselves.
Photo: Leigh Henningham
Which might sound strange from a finance guy. Aren't I supposed to be the one who's barracking for commercialism? For dog-eat-dog? Who'd sell his grandmother for a good year on the stockmarket? Someone who puts profits above all? Well, that's the general perception (and I should say, I know some people in my industry whose grandmothers should be worried), but I'm of the view that the economy should serve our society, not the other way around.
And breaking out of the adversarial narrative so loved by our pollies and idealogues, it is possible to find a middle ground. Capitalism has its obvious flaws. But so did Churchill, who said "...democracy is the worst form of Government except all those other forms that have been tried from time to time". I've adopted that as 'democratic capitalism' for my purposes – it's far from perfect, but it has given us the standard of living we now enjoy and has allowed us to discover, invent and develop all manner of life-improving breakthroughs.
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Oh, don't get me wrong – if Scott Morrison needs some time off and Malcolm Turnbull calls to ask me to take the Treasury reins for a couple of months, there's plenty I'd change about our economic settings. But our problems are of the "we could do better" variety, rather than the "Australia is stuffed" type.
Notwithstanding the fall in GDP in the September quarter, our economy is enjoying the second longest run without a recession (almost 25 years) on record, if you don't mind. Unemployment could be lower, but is very low by the standards of the past few decades. Prices aren't shooting up. Interest rates are low. And, frankly, if we raise our heads above the parapet, we'll notice that we're blessedly free from war, famine, political instability and, well, Donald Trump.
Our system of government provides an imperfect, but pretty bloody good democracy. We have freedom, relative wealth, relative equality and the opportunity to pursue our dreams with a decent safety net, should we fail. Yes, each of those categories could be better, but, as the old proverb holds, we're much better off, as we look at our lives and our country, counting our blessings, not our troubles.
We should absolutely redouble our efforts to improve in those areas we are lacking, but we shouldn't lose sight of the privileged and lucky base from which we start.
And that's as true – perhaps more so – for investors as for anyone else in our country. Our markets are well-regulated. Innovation and entrepreneurship are well supported and have room to flourish. Our education system provides clever, well-qualified workers, who are well paid for their efforts. The rule of law means businesses have certainty and protection. And our reputation abroad helps exporters get a foot in the door of overseas markets.
It won't wipe away market volatility – the long-term still needs to be your investment horizon – but it makes for a very attractive investment environment.
Foolish takeaway
I hope you got to spend some time with people you love during the Christmas season. And maybe a few days off this month. It's a blessing not all Australians get to enjoy. I hope you avoided some of the worst excesses and stresses of yuletide, and can relax just a little, taking in some of the best our country has to offer.
From me and mine, to you and yours: I hope 2017 brings you joy, success and prosperity in all its forms. Most of all, I hope it brings you optimism and reminds you that, despite our challenges and problems, Australia is, without irony, truly the lucky country.
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Scott Phillips is the Motley Fool's director of research. You can follow Scott on Twitter @TMFScottP. The Motley Fool's purpose is to educate, amuse and enrich investors.