5 ms·

I wonder if the inverse rings true as well. Bull markets are paved with the blood of pessimists.

by 1121redblackgo 7y ago

Frost1x 7y ago
So do the meager realists get to avoid bloodshed? Or, better yet, capitalize on the blood of pessimists and optimists?
- camjohnson26 7y ago
  Realists miss out on volatility
- deleted 7y ago
  [deleted]
- shredprez 7y ago
  Rarely! They're mainly collateral damage that gets hurt during the downturn AND the upswing.
- Natsu 7y ago
  The real money is in collecting some % of the money invested as fees.
- idclip 7y ago
  Hodl, fren. Hodl.
kibwen 7y ago
The relevant xkcd: https://xkcd.com/2270/ https://xkcd.com/2270/
totalZero 7y ago
Short squeezes, sure. But they're not pessimists. More like cynics. In fact, today's most famous short seller, Jim Chanos, runs a firm called "Kynikos" (Greek for "cynic"). Apart from short squeezes, markets generally grind higher and crash lower. The left tail of the distribution is usually the thicker, meatier, juicier one. But the mode is usually slightly positive. So it's not usually the blood of cynics, but rather the patience of optimists and the persistence of hard workers, that brings markets higher.
pcurve 7y ago
count me into that bucket. I know of many other too. :-(
raydev 7y ago
Maybe I'm misunderstanding, but there's no blood from the pessimists since they don't really lose what they have. They just miss out.
- mcguire 7y ago
  There used to be a saying, something like if you missed the best 20 days of the market in the last century, you would just about break even. Missing out is very, very expensive.
  - huy-nguyen 7y ago
    If you miss the best 10 days in the last 20 years of the US market, you lose 2/3 of the gains. If you miss the best 20 days, you are slightly underwater. https://www.fool.com/investing/2019/04/11/what-happens-when-you-miss-the-best-days-in-the-st.aspx https://www.fool.com/investing/2019/04/11/what-happens-when-...
- vecter 7y ago
  People do short or buy put options.
kristiandupont 7y ago
Maybe "tears" works better..

I wonder if the inverse rings true as well. Bull markets are paved with the blood of pessimists.

Frost1x 7y ago

So do the meager realists get to avoid bloodshed? Or, better yet, capitalize on the blood of pessimists and optimists?

camjohnson26 7y ago
Realists miss out on volatility
deleted 7y ago
[deleted]
shredprez 7y ago
Rarely! They're mainly collateral damage that gets hurt during the downturn AND the upswing.
Natsu 7y ago
The real money is in collecting some % of the money invested as fees.
idclip 7y ago
Hodl, fren. Hodl.

kibwen 7y ago

The relevant xkcd: https://xkcd.com/2270/ https://xkcd.com/2270/

totalZero 7y ago

Short squeezes, sure. But they're not pessimists. More like cynics. In fact, today's most famous short seller, Jim Chanos, runs a firm called "Kynikos" (Greek for "cynic"). Apart from short squeezes, markets generally grind higher and crash lower. The left tail of the distribution is usually the thicker, meatier, juicier one. But the mode is usually slightly positive. So it's not usually the blood of cynics, but rather the patience of optimists and the persistence of hard workers, that brings markets higher.

pcurve 7y ago

count me into that bucket. I know of many other too. :-(

raydev 7y ago

Maybe I'm misunderstanding, but there's no blood from the pessimists since they don't really lose what they have. They just miss out.

mcguire 7y ago
There used to be a saying, something like if you missed the best 20 days of the market in the last century, you would just about break even. Missing out is very, very expensive.
- huy-nguyen 7y ago
  If you miss the best 10 days in the last 20 years of the US market, you lose 2/3 of the gains. If you miss the best 20 days, you are slightly underwater. https://www.fool.com/investing/2019/04/11/what-happens-when-you-miss-the-best-days-in-the-st.aspx https://www.fool.com/investing/2019/04/11/what-happens-when-...
vecter 7y ago
People do short or buy put options.

kristiandupont 7y ago

Maybe "tears" works better..