Wishful Thinking & Denial of Unpleasant Facts

It takes little experience in the investment business to realize that investors prefer good news.As a bear in the bull market of 1999 I was banned from an institution’s building as being “dangerously persuasive and totally wrong!” The investment industry also has a great incentive to encourage this optimistic bias, for little money would be made if the market ticked slowly upwards. Five steps forward and two back are far more profitable.