Binary View On the Markets is Not the Best Long-Term View

Morgan Housel of The Motley Fool looks at twenty different corrections or bear market periods since 1947 while at the same time examining the market’s long term growth over that same time period. He says that too often the media focuses on those who are either “optimists or pessimists”, which are binary views on the market, but that a third group called the “optimists who regularly expect terrible things to occur” are the ones who will be most likely right over time. Since the late 40s, the S&P 500 has grown by 1,100-fold and yet there have been crisis’s, bear markets and down turns all along the way. A full list of these events can be seen in Housel piece.