"The system is going to collapse, the debt is unmanageable, the dollar is going to zero, the world is going to end!"
Sound familiar? We have all heard the cries of perma bears many times and will continue to do so. Even though the stock market has continued to rise even in the harshest of economic environments, the perma bears continue to lose money in short positions and spread FUD. If you are a perma bear or being unsettled by one, I have news for you.
- Short positions can only yield 100% returns. A long position has unlimited potential. To add to that, the macro trend of the overall stock market is up. Trading against the trend for smaller potential gains makes no sense.
- When the Federal Reserve lowers interest rates, this forces the capital to search for a return instead of sitting still. This drives innovation and stimulates the economy.
- Monthly contributions into retirement accounts create a steady flow of buyers in all economic environments. There are many more passive investors than Robinhood traders, yet Robinhood traders single handedly have been able to move the market on several occasions the past few years.
- The government can and will step in to bail companies out in dire times. If you think this is "unfair to the people", would you prefer that millions of people who work for these companies lose their livelihood and pensions, let alone the loss of goods and services for customers?
- CEOs of publicly traded companies are incentivized when the stock price increases. Company board members exist to maintain and increase shareholder returns.
- When the dollar decreases in value, stock prices increase. If perma bears who constantly talk about the dollars decreasing value had any sense, they would be proposing the obvious solution of purchasing stocks.
- Politicians as well as central banks consistently and actively do what they can to keep the stock market stable and increasing in value.
If someone is bearish for a day, listen to them. If someone is bearish for months, ignore them. If someone is bearish for years, block them.