This Week in History

🗓️ On April 20th, 1611, William Shakespeare’s tragedy Macbeth is performed for the first time at the Globe Theatre in London.

🎭One of William Shakespeare's most famous and frequently performed tragedies it is believed to have been written sometime between 1603 and 1607. The Bard’s shortest tragedy is a nod toward James I, a Scot who ascended to the throne of England after the death of Queen Elizabeth I. The play is often considered one of Shakespeare’s darkest works, deeply imbued with elements of the supernatural, political ambition, and moral corruption. Macbeth draws heavily on historical sources, particularly the works of Raphael Holinshed, whose "Chronicles" Shakespeare used as a basis for many of his historical plays. The real Macbeth was a Scottish king from 1040 to 1057 whose rule was far more stable and less tyrannical than depicted in Shakespeare’s depiction. Today, Macbeth retains a reputation for being unlucky, allegedly because the text uses the spells of real witches. It is still considered bad form to utter the actual name of the Scottish Play while inside a theatre.

🏴󠁧󠁢󠁳󠁣󠁴󠁿 Investing lessons from Shakespeare's "Macbeth" might not be immediately obvious, given its primary focus on ambition, power, and guilt. Then again, there may not be three better words to describe Wall Street. Several key investment insights can be extracted when considering the themes and decisions driving the narrative. Here are four of them:

🎭 "What's done cannot be undone.” Just as Macbeth overextends himself based on the witches' sketchy predictions, some of us might rely too heavily on speculative, risky investments touted by “experts.”  Talk about unlucky. Which brings us to…

🎭 "A tale, told by an idiot, full of sound and fury, signifying nothing.” Macbeth is heavily influenced by the witches, whose equivocal prophecies lead him astray. This highlights the importance of choosing advisors wisely and being critical of the sources and quality of the information on which investment decisions are based. Avoid the bad actors and the false predictions.

🎭 "Let every man be master of his time.” Macbeth is fixated on immediate power, neglecting the long-term implications of his actions, which ultimately lead to his destruction. Focusing solely on short-term gains can jeopardize long-term wealth, especially if it means taking unsustainable risks or engaging in questionable practices.

🎭 "Confusion now hath made his masterpiece.” Macbeth's actions caused immense psychological distress, which affected his decision-making abilities and reign. Similarly, investors should be aware of the emotional and psychological toll that investing can take, especially in volatile markets, and strive to maintain clarity.