Skip navigation
#headerOverlay{
color: #ccd6df;
font-size:11px;
line-height:130%;
}
#headerOverlay strong{
color: #ffd226;
}
#headerOverlay a {color:#ccd6df;text-decoration:none;}
#headerOverlay a:hover {color:#ffd226;}
#headerOverlay a:visited {color:#ccd6df;}
#headerOverlay a:visited:hover {color:#ffd226;}
Symbol Lookup
onloadAutoSuggest();
dapMgr.enableACB("SearchBox88x31",false);
dapMgr.renderAd("SearchBox88x31","&PG=CNBSEB&AP=1071&PN=CNBC",88,31);
cnbc_displayUsername("cnbc_usertime","cnbc_username");RegisterSign InMember CenterSign OutRegistercnbc_toggleUserState();HOMENEWSMARKETSEARNINGSINVESTINGVIDEOCNBC TVCNBC 360U.S.Asia-PacificEuropeEconomyEnergyGreenTechnologyBlogsWiresSlideshowsSpecial ReportsCorrections
dapMgr.enableACB("USNewsBlogs728",false);
dapMgr.renderAd("USNewsBlogs728","&PG=CNBGE7&AP=1390&PN=CNBC",728,90);
NetThe Least Important Most Important Thing
var cnbcSubHeaderId = document.getElementById('subheader_'+ 38911124);
cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML;
Email: document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');Call: 201-735-iNet (4638)Text Message: Text NETNET followed by your tip to 26221.
dapMgr.enableACB("USNewsBlogs300x250",false);
dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=1089&PN=CNBC",300,250);
Current DateTime: 05:04:17 13 Oct 2010LinksList Documentid: 38910464Expiration DateTime: 10/13/2010 5:06:44 PM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" );
Einhorn Calls RiverTown a "Moonscape"
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39648702", "38910464_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39648702", "38910464_1","cnbcCommentsTxt" );
Let's Not Start Lionizing The Anti-Foreclosure Deadbeats
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39657316", "38910464_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39657316", "38910464_2","cnbcCommentsTxt" );
Wall Street Has Taken Control Of The Fed
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39656398", "38910464_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39656398", "38910464_3","cnbcCommentsTxt" );
Investing in 2020: Welcome to the 'New Abnormal'
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39655293", "38910464_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39655293", "38910464_4","cnbcCommentsTxt" );
JP Morgan Dumped MERS Two Years Ago
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39653903", "38910464_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39653903", "38910464_5","cnbcCommentsTxt" );
JPMorgan Says Real Estate Could Wipe Out $3 Billion
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39648896", "38910464_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39648896", "38910464_6","cnbcCommentsTxt" );
Barclays Kills Lehman.com
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654076", "38910464_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654076", "38910464_7","cnbcCommentsTxt" );
Standard Chartered: Fresh Meat?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39652248", "38910464_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39652248", "38910464_8","cnbcCommentsTxt" );
The Foreclosure Crisis Tilts Toward Total War
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39651440", "38910464_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39651440", "38910464_9","cnbcCommentsTxt" );
Why Do Bears Seem Smarter Than Bulls?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39651881", "38910464_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39651881", "38910464_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" );
Current DateTime: 02:15:50 13 Oct 2010LinksList Documentid: 39085620FacebookTwitterRSSCurrent DateTime: 02:14:06 13 Oct 2010LinksList Documentid: 38852222John Carney
Runs this joint.
Cadie Thompson
Really, really runs this joint.
Ash Bennington
NetNet Special Reporter
Kate Kelly
Reports on the major Wall Street firms, trading, and regulation.
Herb Greenberg
A senior stocks commentator for the network appearing on CNBC TV and on CNBC.com.
Jeff Cox
A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.
Lori Spechler
A Senior Editor at CNBC and a former trader / market maker in commodity options.
Lori Ann LaRocco
A Senior Talent Producer at CNBC.
Nicole Lapin
Runs the graveyard.
Current DateTime: 05:04:17 13 Oct 2010LinksList Documentid: 38910635Expiration DateTime: 10/13/2010 5:06:35 PM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" );
Private Equity, AOL Exploring Possible Bid for Yahoo: Report
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39659540", "38910635_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39659540", "38910635_1","cnbcCommentsTxt" );
SEC Inspector General: No Politics Behind Goldman Suit
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39658947", "38910635_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39658947", "38910635_2","cnbcCommentsTxt" );
Does Street Have the Fed 'On the Hook' for More Easing?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654222", "38910635_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654222", "38910635_3","cnbcCommentsTxt" );
Hottest Commodity? The Whole Sector
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654597", "38910635_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654597", "38910635_4","cnbcCommentsTxt" );
Market Pros: Are Bulls Getting Ahead Of Themselves?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39651804", "38910635_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39651804", "38910635_5","cnbcCommentsTxt" );
OpEd: Don't Start Lionizing Anti-Foreclosure Deadbeats
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39657316", "38910635_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39657316", "38910635_6","cnbcCommentsTxt" );
Ex-Car Czar Said to Settle With SEC in Pension Case
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39658795", "38910635_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39658795", "38910635_7","cnbcCommentsTxt" );
Home Lending Woes May Wipe Out $3 Billion: JPMorgan
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39648896", "38910635_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39648896", "38910635_8","cnbcCommentsTxt" );
China Can't Lead Knowledge-Based Future: Condi Rice
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39656815", "38910635_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39656815", "38910635_9","cnbcCommentsTxt" );
Chinese High Rollers Invest in US Real Estate
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654990", "38910635_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("39654990", "38910635_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" );
» HelpCurrent DateTime: 02:15:38 13 Oct 2010LinksList Documentid: 38851925Subscribe to this RSS feed
Stay up to date with NetNet.
dapMgr.enableACB("ContextBlog300",false);
dapMgr.renderAd("ContextBlog300","&PG=CNBAL3&AP=1089&PN=CNBC",300,250);
setDefault('cnbc_textbody');Why Do Bears Seem Smarter Than Bulls? Published:
Wednesday, 13 Oct 2010 | 11:58 AM ET Text Size By: James Altucher, Managing Director of Formula Capital Digg
getDiggParams(); Buzz
cnbc_createYBuzzURL(); function fbs_click() {u=location.href;t=document.title;window.open('http://www.facebook.com/sharer.php?u='+encodeURIComponent(u)+'&t='+encodeURIComponent(t),'sharer','toolbar=0,status=0,width=626,height=436');return false;}
FacebookTwitter
cnbc_createTwitterURL();
addthis_pub = 'cnbccomrssfeeds';
addthis_hide_embed=false;
addthis_options = 'linkedin, digg, delicious, google,facebook,more';
Mor
Really, really runs this joint.
NetNet Special Reporter
Reports on the major Wall Street firms, trading, and regulation.
A senior stocks commentator for the network appearing on CNBC TV and on CNBC.com.
A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.
A Senior Editor at CNBC and a former trader / market maker in commodity options.
A Senior Talent Producer at CNBC.
Runs the graveyard.
Stay up to date with NetNet.
I admit it: I'm jealous of Nouriel Roubini aka Dr. Doom. He's been dead bearish this rally (see our joint CNBC appearance on July 5) and I vaguely recall him being bearish at the market lows in March, 2009. But, to be fair, in August 2006 he was calling for a housing crash as well. So I give him some credit.
Rose | Mueller | Stock4B | Getty Images
But I'm jealous that despite being non-stop bearish over the past 1.5 years since the lows he still gets quoted everywhere, speaks at every conference, has supposedly 1000s of institutional clients paying for his wisdom, and has time for non-stop parties that he will never invite me to. Well, to be fair, he told me he will invite me to one if and when we go into a double-dip recession. But since that is not happening, the likelihood is that I will never go to a Roubini party. Why is he, and every other bear (Howard Ruff, Peter Schiff, etc), quoted everywhere all the time even though in some cases for decades they've been dead wrong (see this Howard Ruff quote from 1980 (read the italics)). In fact, perusing the message boards, optimists on the economy are often referred to as idiots and morons even though most metrics for the economy have gone straight up since mid-2009 and the stock market is about 80% higher than it was at the lows.
So why are the bears often seemed smarter or more in tune than the bulls?
1) Laziness. People want justification to not work harder ("if the world is going to hell then why should I bother").
2) Evolution. People's brains are hardwired to respond more to signs of danger. Our brains can get fixated, and then addicted, to the negative more than the positive.
3) Fitting in. Because we all have a need to be accepted, liked, and listened to, people are likely to share bad news than good news (because they know that #2 above will get them to be listened to if its bad news).
4) Pattern recognition. Because of #2, people will notice bad events more than positive events as they happen and more easily link those events to the people who "warned them".
Consequently, people begin to overgeneralize ("we just had a lost decade, so STOCKS ARE BAD").
Two steps to avoid the pessimism:
1) Remind yourself of the evolutionary tendency to latch onto the negative (and then to subsequently overgeneralize)
2) ask yourself what the agenda is of the people making the pessimistic claims.
3) Remind yourself that:
Maybe the Bears get to go to all the parties, but long term the bulls should make money. _________________________________________________________________Companies mentioned in this post
Intel INTCloading...
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_intc_ID1EREAC15839609');[INTC
Loading...
()
]
cnbc_quoteComponent_init_getData("intc","WSODQ_COMPONENT_INTC_ID1EREAC15839609","WSODQ","true","ID1EREAC15839609","off","false","inLineQuote");
McAfee MFEloading...
cnbc_WSODChartLoad('http://api-cdn.cnbc.com/api/chart/chart.asp?&type=small&charttype=price&timeframe=1day&realtime=1&symbol=MFE&showHeader=&showSidebar=0&hideExchange=0&changeOverTime=0&showExtendedHours=0','cnbcWSOD_chartID1EXJAC');
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_mfe_ID1EXJAC15839609');[MFE
Loading...
()
]
cnbc_quoteComponent_init_getData("mfe","WSODQ_COMPONENT_MFE_ID1EXJAC15839609","WSODQ","true","ID1EXJAC15839609","off","false","inLineQuote");
Apple AAPLloading...
cnbc_WSODChartLoad('http://api-cdn.cnbc.com/api/chart/chart.asp?&type=small&charttype=price&timeframe=1day&realtime=1&symbol=AAPL&showHeader=&showSidebar=0&hideExchange=0&changeOverTime=0&showExtendedHours=0','cnbcWSOD_chartID1E4OAC');
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_aapl_ID1E4OAC15839609');[AAPL
Loading...
()
]
cnbc_quoteComponent_init_getData("aapl","WSODQ_COMPONENT_AAPL_ID1E4OAC15839609","WSODQ","true","ID1E4OAC15839609","off","false","inLineQuote");
Dendreon DNDNloading...
cnbc_WSODChartLoad('http://api-cdn.cnbc.com/api/chart/chart.asp?&type=small&charttype=price&timeframe=1day&realtime=1&symbol=DNDN&showHeader=&showSidebar=0&hideExchange=0&changeOverTime=0&showExtendedHours=0','cnbcWSOD_chartID1EEEAE');
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_dndn_ID1EEEAE15839609');[DNDN
Loading...
()
]
cnbc_quoteComponent_init_getData("dndn","WSODQ_COMPONENT_DNDN_ID1EEEAE15839609","WSODQ","true","ID1EEEAE15839609","off","false","inLineQuote");
Google GOOGloading...
cnbc_WSODChartLoad('http://api-cdn.cnbc.com/api/chart/chart.asp?&type=small&charttype=price&timeframe=1day&realtime=1&symbol=GOOG&showHeader=&showSidebar=0&hideExchange=0&changeOverTime=0&showExtendedHours=0','cnbcWSOD_chartID1EKJAE');
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_goog_ID1EKJAE15839609');[GOOG
Loading...
()
]
cnbc_quoteComponent_init_getData("goog","WSODQ_COMPONENT_GOOG_ID1EKJAE15839609","WSODQ","true","ID1EKJAE15839609","off","false","inLineQuote");
McDonalds MCDloading...
cnbc_WSODChartLoad('http://api-cdn.cnbc.com/api/chart/chart.asp?&type=small&charttype=price&timeframe=1day&realtime=1&symbol=MCD&showHeader=&showSidebar=0&hideExchange=0&changeOverTime=0&showExtendedHours=0','cnbcWSOD_chartID1EQOAE');
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_mcd_ID1EQOAE15839609');[MCD
Loading...
()
]
cnbc_quoteComponent_init_getData("mcd","WSODQ_COMPONENT_MCD_ID1EQOAE15839609","WSODQ","true","ID1EQOAE15839609","off","false","inLineQuote");
Marriott MARloading...
cnbc_WSODChartLoad('http://api-cdn.cnbc.com/api/chart/chart.asp?&type=small&charttype=price&timeframe=1day&realtime=1&symbol=MAR&showHeader=&showSidebar=0&hideExchange=0&changeOverTime=0&showExtendedHours=0','cnbcWSOD_chartID1EWTAE');
Quote | Chart | News | Profilecnbc_comboQuoteMove('popup_mar_ID1EWTAE15839609');[MAR
Loading...
()
]
cnbc_quoteComponent_init_getData("mar","WSODQ_COMPONENT_MAR_ID1EWTAE15839609","WSODQ","true","ID1EWTAE15839609","off","false","inLineQuote");
Questions? Comments? Email us at document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC
Read Full Article »
