Pessimists sound smart. Optimists make money.
Does it pay to be an optimist?Volatile financial markets and flaws in human psychology can cause many investors to be unduly pessimistic.Yet, remaining an optimist - and remaining invested - is the surest way to achieve the unrivalled long-term returns of the stock market.Today, we discuss why optimism about investing is not only desirable but rational. And how to spot biases and alarmist thinking that can lead to destructive behaviour.And in today’s Dumb Question of the Week, we ask: Why hold any bonds at all?Selected linksGapminderOur World in DataA Long Bet: Brynjolfsson vs Gordon