05/23/2026
Pessimists sound smart; optimists make money.
“Optimism is true moral courage” Ernest Shackleton
Just two months ago, the stock market fell about 10 percent and all the pessimists lined up their narratives in the papers, trying to attract eyeballs and advertisers. — Remember, bad news makes good copy
What they missed , and what we told our clients was the true story — corporate profit growth was rising as the market was falling
We said — “its profits, not politics; companies not counties, that determine where the stock market goes.”
As Warren Buffett likes to teach — the worst bet you can ever make is against the US economy; it may get gummed up from time to time, but there is no stopping the innovation and free market dynamics of the American economy.
The next time the stock market drops 10-20 percent, which it will occasionally, re read this post, and get ready for all the pessimists trying to derail you from your long term goals
This isn’t blind optimism— it’s MATH.
Profits up — stocks up
Instead of “ it’s the economy, stupid “. It should be , “it’s the profits, stupid”
