The Pollyannas Have Their Day (And Say)
“Don’t believe the mainstream media. now is the time to buy. we buy when others sell and sell one others want to buy. even with whats happening in the real estate market, right now is the time to buy real estate too. do it right and cash in big.”
-Comment left on Yahoo! Finance website
Despite a logjam of bad economic news lately, it seems the “Pollyannas” (referring to an overly-optimistic character from a children’s story of the same name) are running rampant on Wall Street and elsewhere. Emboldened by a Dow Jones Industrial Average that has risen 484.12 points since Wednesday’s opening, “don’t worry, be happy” is their war cry. Consider the following headlines and snippets from mainstream media outlets the past couple of days:
“Buy Now, Don’t Regret Later”
Yahoo! Finance, July 16
But perhaps we do have to be bold more often, and maybe even a little foolhardy when our gut tells us that this is important, or when we come across something alluring in our adventures. If something enchanting catches our eye — whether it’s a Ukrainian samovar or just a hat on your way to work — maybe it’s best to get caught up in the euphoria of the moment.
“This Real Estate Rout May Be Short-Lived”
SmartMoney, July 15
Noted market experts such as Pimco bond-fund manager Bill Gross and economist Mark Zandi of Moody’s Economy.com predict the meltdown in housing will continue for many months, with home prices declining by 10% or more from today’s depressed levels… Yet, such pessimism appears overdone, based on much recent data. Sales of existing homes are showing tentative signs of increasing, while the plunge in prices likely is nearing an end.
“Mean Street: Pollyannas of the World Unite! It Is Time to Buy”
Wall Street Journal’s Deal Journal, July 15
All this bad news can only mean one thing: It is time to buy.
Pollyannas of the World Unite! You have nothing to lose but your chains of media-induced panic.
Of course, there is no getting around the seriousness of the situation, given runaway oil prices and the sorry state of the nation’s financial sector. But take a few minutes and peer through the fog of Breaking News flashes scrolling across CNBC every 30 seconds.
Consider these big flashes: A major restructuring at General Motors. Is this news? GM has been lumbering from one restructuring to another for the past three decades.
George Soros and Jim Rogers predict an end of the world as we know it…yet again. Can anyone recall when either was bullish about the U.S. economy?
Wall Street analysts fall over themselves to downgrade financial stocks. Remember the Goldman Sachs reversal of its bullish call on financials a few weeks back? It is pure herd behavior. Good luck finding analysts who like a financial stock at any price.
A bearish Wall Street is swept by powerful ill-winds. But remember the line from the movie Pollyanna, “When you look for the bad in mankind expecting to find it, you surely will.”
And truer words describing the mindset of a bear market have rarely been spoken.
By the way, does anyone know what becomes of overly-optimistic Pollyanna in the children’s story? She gets crippled in an accident.
Sorry to blow the ending for you…
“I’ve never replied to nonsense like this before but I could’t resist there is no way that this minor blip even compares by the numbers I would bet in ten years we won’t even remember the “housing bubble” I think that the time back in 2001 to 03 was worse, give me a break. f@#% the critics. The U.S. economy is still the greatest on Earth. Think about it.”
-Comment left on Yahoo! Finance website
Sources:
“Buy Now, Don’t Regret Later”
George Anders
Yahoo! Finance, July 16, 2008
“This Real Estate Rout May Be Short-Lived”
Jonathan R. Laing
SmartMoney, July 15
“Mean Street: Pollyannas of the World Unite! It Is Time to Buy”
Evan Newmark
Wall Street Journal, July 15, 2008
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