Rational Optimism Pays – Try It

𝗪𝗵𝗼 𝗶𝘀 𝘄𝗶𝘁𝗵 𝗺𝗲? 🙋‍♂️

I choose to believe that the future will be better than the past.

We live in a world where far more people wake up in the morning, trying to make the world a better place than wake up thinking we’re all doomed.

But we should avoid blind optimism or wishful thinking & strive for flexible optimism – optimism with its eyes open, wide open to the facts.

If you cultivate that kind of rational optimistic mindset it will significantly increase your chances of health, wealth, & happiness along the way.


And here is why:

1️⃣ “Whether you’re an optimist or a pessimist may or may not affect the outcome. It’s just that the optimist has a better time in life.” — James Borg, author

2️⃣ Pessimism can be expensive. Example: Parking all your money in cash.

3️⃣ Things are getting better, it’s just impossible for many people to believe this could possibly be true when they live headline to headline.
There are MANY overnight tragedies.
There are NO overnight miracles.
Good news takes place over decades while bad news can happen in an instant.

4️⃣ You’ll fare better in the stock market if your time horizon is measured in decades rather than days.

5️⃣ The pessimist criticizes, the optimist creates.
Pessimism is often wrong because people assume a world where there is no change or innovation. 
They simply extrapolate from what is going on today, failing to recognize the new developments & insights that might alter current trends.
Bet against human progress at your own peril.

6️⃣ “Pessimism always sounds smarter than optimism because optimism sounds like a sales pitch while pessimism sounds like someone trying to help you.” – Morgan Housel

It’s fine to have views on the economy. It’s fine to listen to other people’s views on the economy.

But it’s rarely helpful to act on those views when it comes to your portfolio.

Yes, the macro economy can have an impact on your financial situation.

𝗕𝘂𝘁 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝗲 𝗱𝗿𝗶𝘃𝗲𝗻 𝗽𝗿𝗶𝗺𝗮𝗿𝗶𝗹𝘆 𝗯𝘆 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗺𝗶𝗰𝗿𝗼𝗲𝗰𝗼𝗻𝗼𝗺𝘆 — 𝘆𝗼𝘂𝗿 𝗿𝗶𝘀𝗸 𝗽𝗿𝗼𝗳𝗶𝗹𝗲 & 𝘁𝗶𝗺𝗲 𝗵𝗼𝗿𝗶𝘇𝗼𝗻.

7️⃣ “The intelligent investor is a realist who sells to optimists and buys from pessimists.” – Benjamin Graham, The Intelligent Investor

My conclusion:
𝙄 𝙘𝙝𝙤𝙤𝙨𝙚 𝙧𝙖𝙩𝙞𝙤𝙣𝙖𝙡 𝙤𝙥𝙩𝙞𝙢𝙞𝙨𝙢 𝙗𝙮 𝙖 (𝙨)𝙢𝙞𝙡𝙚❗ 😁

“No one knows enough to be a pessimist” – Wayne Dyer

“While catching up on the news is merely depressing to the citizen who has no stocks, it is a dangerous habit for the investor.” – Peter Lynch, Beating the Street

“The pessimist sees difficulty in every opportunity. The optimist sees opportunity in every difficulty.” – Winston Churchill