We live in a culture of pessimism as evidenced by a constant barrage of gloom and doom headlines in the media. In fact, the hyperactive media of the 21st century never seems to let up on the notion that we are living in a world that is becoming exponentially bleak. This is, however, not a new phenomenon, but rather exaggerated beyond measure as we devolve into the “instant information age” (please note that they don’t call it the “knowledge age”). Hence, as we thirst for our information dosages “quick and easy” in our daily information consumption regimen, let’s try to monitor the pessimistic slant predominant in the average newsbyte. If we do so, we may be able to see something that most others will neglect. Follow me on this for a minute.
In order for this theory to effectively sink in and gain traction, we need to come to a consensus before we move forward. If you agree that the media has been on a negativity binge since day one, we are off to the start of a critical breakthrough in terms of positioning our mindset to capitalize on the truest means of counter-intuitivism. In other words, in order for us to take advantage of the negativity in the news and capitalize on many opportunities others are missing, we must first get our heads around the idea that many (if not most) people are hypnotized by the paralyzing negativity prevalent in today’s headlines. Are you with me so far? Great!
Moreover, all four fiscal quarters of 2010 showed GDP growth1, sequential corporate earnings growth2, and positive job creation in every single month3.
The point of this blog is to appeal to extraordinary thinkers to question conventional wisdom, or popular opinion, whenever possible. The result of this exercise is to see where an opportunity exists when the ordinary thinker misses it. Contact me directly to put this theory to work in your investment management strategy.
D. Scott Bloom, CFP®
1. National Bureau of Economic Research (NBER)
2. Standard & Poor’s (S&P)
3. Bureau of Labor Statistics (BLS)
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor before investing. All performance referenced is historical and is no guarantee of future results.
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