🍺Optimists vs Pessimists 🍺

Happy Election Week, everyone, and welcome to the Poor Boy Report!

With election hype in full swing, I chose an article to offer a fresh perspective amid all the noise. Whether you’re feeling optimistic, skeptical, or just plain tired of the predictions, this read might just help you see things a bit differently.

Today's Report: Optimists Are the Best Investors, Even If the Pessimists Sound Smarter - White Coat Investor

Cold Poor:

Dr. Jim Dahle points out a surprising truth: while pessimists often sound smarter, optimists are the ones who make money. He dives into five years of market returns, showing how optimism often triumphs, even during times of crisis. Despite downturns like 2022, overall U.S. stocks have delivered strong annualized returns.

He highlights that pessimists latch onto current crises—pandemics, inflation, recessions—forecasting doom, while optimists trust in recovery and human ingenuity. This optimism may sound naïve, but over the long term, it wins. Dahle’s advice: invest with optimism but work and save like a pessimist. Remember, markets have faced countless challenges and still rise over time.

My Poor:

The election has taken my newsfeed hostage and is filled with predictions: stocks will soar or crash depending on who wins, some people are talking about leaving the country if certain outcomes happen—honestly, it’s a lot of noise. Sure, there might be a hint of truth in some of it, but here’s the reality: we can only control what we can control. 

The author makes a great point about stock returns over the past five years, which have been strong despite waves of pessimistic predictions. But let’s zoom out even further—over the last 50 years, the market’s trend line steadily goes up 7-10% annualized return for the SP 500. The lesson? Ignore the noise, make a plan, and stick to it. Headlines and hot takes come and go, but a solid investment strategy can outlast them all.

Have a great week everyone.

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_{Disclaimer: The content provided in The Poor Boy Report (PBR) is for educational and informational purposes only and should not be considered as professional financial advice or investment recommendations. All information presented is based on personal opinions and research and may not reflect the most current developments in personal finance.}

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