Choluteca bridge is a bridge over the river Chouletca in Honduras in Central America – A region notorious for storms and hurricanes.
When they decided to build a new bridge over the river, they wanted to make sure it would withstand the extreme weather conditions. The result was a modern-day marvel of design and engineering – a bridge par excellence.
Soon, hurricane Mitch hit Honduras. There was devastation all around. The river Choluteca flooded, 7000 people lost their lives, and all the bridges in Honduras destroyed. Except one – The new Choluteca bridge.
But there was a ‘twist’ in the tale. Figuratively, and literally. While the bridge was intact, the roads leading to it were both swept away. The flooding also forced the river Choluteca to change course. It now flowed beside the bridge. Not under. So, while the bridge was strong enough to survive the hurricane, it became a bridge over nothing. A bridge to nowhere.
The Choluteca bridge presents a brilliant metaphor for us to introspect our financial decisions – decisions that are receiving the short end of the stick, thanks to the hurricane called COVID.
Your portfolio apart from being built to LAST, has to be built to ADAPT. There will be certain external factors – like a worldwide pandemic, or internal factors – the downfall of major industry or company that will shake the markets. The silver lining is that indices might return to normal and reach new highs even in such times, but a dormant stock will never keep up because it was not adaptable in the first place.
Just like office spaces are not relevant anymore and businesses are unleashing the potential of going completely online, the rules of the markets will change. The rule book itself will have to be thrown out. New industries will drive the market. The old horse industries that currently run the market till date will die a slow but sure death.
We, at KRIIS, understand that a boat in troubled waters needs an expert navigator to steer. Hence, as a mark of goodwill, we will be happy to help our fellow investors and advice them on their existing portfolios, on the house.