Most choices aren’t binary.
Americans are obscenely obese, yet at the same time, malnourished.
How can this sad fact be true?
The answer lies in our overconsumption of ultra-processed foods. Food engineers devise strategies that hack our brains and force us to overeat by design.
According to former FDA Commissioner David Kessler, Ultraprocessed foods target the brain reward circuits that keep us coming back for more. They trigger overeating. They deprive us of any sense of fullness.
Have you ever seen anyone binge eat apples, bananas, or strawberries? We don’t because these fruits lack seed oils, MSG, artificial flavorings, or any other let ‘s-pig-out additives.
Donuts and chips are on the other side of the ledger.
How did we arrive at this point?
A little history lesson: In 1958, the U.S. created the designation Generally Recognized as Safe or GRAS.
GRAS is the goal for policing food additives. Over the years, Food companies hijacked GRAS with their armies of lobbyists armed to the teeth with Cash.
The result: Food companies now self-regulate which additives they add to our food supply. The results are predictable. The majority of the American diet is composed of crap, and it’s no accident.
Source: American Institute for Cancer Research
Contrast this to Europe, where Companies add about 400 ingredients to foods. Compare Europe’s rigorous standards to our own lax system, where a range of 4,000 to 10,000 separate ingredients permeate our food supply.
European authorities require every ingredient to be proven safe before it’s added to consumers’ plates. Across the pond, American ingredients are deemed unsafe after harming millions of people! Human biological systems reject this onslaught of empty calories. The health consequences of our current system are nothing short of catastrophic.
Dr. Kessler agrees: The products, which he describes as energy-dense, highly palatable, and rapidly absorbed, have altered our metabolism and led to the greatest increase in chronic disease in history.
Kessler says ultraprocessed foods are a primary driver of type 2 diabetes, hypertension, abnormal lipids, fatty liver, heart attacks, stroke, and heart failure.
Obesity has become normalized. Sneakers are designed so God Forbid, you don’t have to bend over to tie them.
The result of this manufactured catastrophe is a first in human history: obese people starved of nutrients.
Like the root cause of America’s chronic disease epidemic, investors face concepts that at first glance appear contradictory but are valid simultaneously.
Harry Markowitz stated, “Diversification is the only free lunch.” Contrast this with Warren Buffett’s doctrine: “Concentration builds fortunes.” Both statements can be factual in the proper context.
Diversification protects wealth. Conviction in concentration is the formula for ginormous riches. The resolution to these conflicting theories lies in their application—different tools for different objectives. Concentration helps build fortunes, but diversification preserves them.
How about Ray Dalio’s theory that Cash is trash? Over the long term, this is a fact. Inflation obliterates purchasing power over decades.
The short term is a different paradigm. During the crises of 2008 and 2020, Cash enabled investors to purchase valuable assets at distressed prices.
Cash can be a crown jewel if it’s available at the right moments. In expansions, Cash is a drag on returns; during market corrections, it’s the ultimate stealth weapon.
Finally, Eugene Fama declared, “Markets are efficient.” Robert Shiller took the opposing view, “Markets are irrational.”
Is it possible for both men to be correct?
Absolutely!
In highly liquid markets, it’s challenging to outperform the indices over extended periods—the opposite ocuurs during emotion-driven bubbles and subsequent crashes. In the majority of cases, Fama is correct. On the margins, Shiller has a valid point. The margins can matter – a lot.
Choose wisely when analyzing your money or health.
Nuance should be at the top of your criteria before making any crucial decisions.
