FINALLY: beware of “pervasive pessimism” Make no mistake: there are plenty of reasons to take a pessimistic view of the stock market, the economy and the state of the world (isn’t there always?). But such a mindset has never been a viable long-term strategy for protecting or building wealth. No bear market lasts forever. In fact, over the broad sweep of stock market history, bear markets only comprise one out of about every four years. As stormy as things may be right now, eventually the light of clearer skies will creep above the horizon. Yes, we all need to be aware of events and changing circumstances that pose a danger to our financial goals. But resist the temptation to become a “perma-bear” – the investor who is constantly viewing economic challenges as stock market catastrophes, rather than things that will work themselves out in time. Don’t allow your negative observations to keep you from reallocating your portfolio, investigating new ideas or seizing new opportunities. During a bear market, an investment in optimism could be the best investment that you could ever make. Finance CSANews | WINTER 2022 | 43
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