Why pessimists don’t make money

By Marcus Padley – Source: theage.com.au

We live in constant fear of a sharemarket collapse. The higher the market goes the more we think about it. Such is the scarring from the global financial crisis. But if there is anything I have learnt after 35 years of trying to solve the sharemarket conundrum, it is that pessimists don’t make money. Fear, which is more prevalent in a pessimist, will naturally limit your gains. Being conservative is not best, it is limiting because it will cut you out well before the best bits of the sharemarket arrive….

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