There is nothing useful I can add to the current debate in the UK without boring you, millions of words have already been written with many more to come. It is however worthwhile to poise and reflect on the increasing directional divide between the Baby Boomers and The Millennials which is our thematic of investment strategy.

Remember our mantra that "the millennials are simply not buying what the boomers are selling", that is all the more obvious following the result on Friday. One can now also add that "the boomers are biting back". And as we continually say, it's only just begun. Many smart people have been writing about this for some time now, Neil Howe, Kevin Kelly and Pippa Malmgren to name a few have been predicting these outcomes and black swan events on an ongoing basis.

Neil Howe's book The Fourth Turning, Kevin Kelly's book The Inevitable and Dr Pippa Malmgren's book Signals have been at the front end of the changing times and the more you read the more you can prepare your investment strategy. Remember; the ultimate value of all assets rests on their ability to produce goods and services in the future. And you need to examine what these opportunities will be in the new world order.

This passage from Pippa's book is a great example. 

"For many people, the word ‘economics’ is accompanied by a wave of fear and a sense of exhaustion. ‘Economics’ conjures images of numbers, algorithms, mathematical models and a highly technical quantitative subject. If this sounds familiar, consider a different possibility: the economy begins inside the human soul, driven by the never-ending battle between the Greek goddesses Hubris and Nemesis for possession of our psyche.

The ancient Greeks described Hubris as the spirit who lights the fire of desire or greed and compels us to take risks to achieve what the ego desires. The ego wants more: more status, more money, more success, more material possessions, more recognition, more knowledge, more confidence. Hubris is a powerful force in the world economy, because it propels individuals and societies to innovate – which is always risky – and thereby generate growth, wealth and GDP.1 Nemesis is the goddess of retribution, targeting those who indulge in too much hubris. Nemesis douses the fire of hubris with doubt and punishes hubris with loss. Nemesis lurks at the edge of every business and every balance sheet and every job. She peers over the shoulder of every risk-taker, threatening to undermine the hope and aspiration of the endeavour. Hubris gives rise to hope and Nemesis gives rise to fear, but both are critical to the proper functioning of the world economy. It is the balancing of the two that permits people to successfully achieve their goals and contribute to a flourishing economy. An excess of either spirit is likely to end in economic catastrophe.

This balancing act within each one of us is what underpins the economy. Each time we (individually, or collectively as a society), reach for something we want, something that is a little beyond our immediate grasp, something that involves risk, growth occurs. That’s where ‘value added’ is created. When we reach and succeed, confidence grows, along with GDP and wealth. Conviction in our abilities increases alongside productivity. Finding a balance between Hubris and Nemesis, hope and fear, and taking risks that involve the possibility of real failure and real success has always been a popular theme for writers, poets, psychologists and other observers of the human condition. It is a quest that reveals and reinforces character. Shakespeare’s enduring appeal largely rests on his ability to understand and portray the true nature of man. Macbeth cannot find a good balance between his ambition and his fear of failure: ‘I have no spur / To prick the sides of my intent, but only / Vaulting ambition, which o’erleaps itself / And falls on th’other.

When we reach and fail, loss occurs – sometimes financial, but also loss of confidence, loss of pride, loss of dignity. Yet, even in failure, lessons are learned that serve us well when we are ready to take a risk again. Failure is thus a critical component of GDP and wealth creation. Only through failure do we become more skilled at risk-taking and therefore more likely to be successful in the future, as the Harvard Business Review noted in April 2011 in an issue that celebrated failure.

What is learned from mistakes can be more important than what is learned from success. The nineteenth-century American essayist and poet Ralph Waldo Emerson wrote that, ‘All life is an experiment. The more experiments you make, the better.’ This idea that experience is, in itself, valuable was personified by the inventor Thomas Edison, who said: ‘I have not failed 1,000 times. I have successfully discovered 1,000 ways to not make a light bulb.’

The economist Joseph Schumpeter (1883–1950) concluded that the economic cycle is fundamentally driven by innovation and ‘creative destruction’. He did not say innovation and destruction; he specified creative destruction because people learn from their mistakes. Creative destruction means the enterprise may be lost but the desire to have a successful enterprise, and the skill needed to build it, is usually not lost. Through upturns and downturns, success and failure in the economy serve a purpose.

The downturn teaches lessons and makes us more skilled at balancing and preparing for the adversity and opportunity that the future is bound to bring. Upturns and downturns alike reward those who have taken calculated, forward-looking risks and entice others to follow suit. Every time the economy changes, it emits new signals that allow us to navigate our way forward, if only we catch and interpret those signals".

Don't let this one go past without careful consideration of the new future. As someone told me the only things certain are death, taxes and data.