Wednesday, March 10, 2010

Optimism, Pessimism & The Worst Case Scenario

The markets continue to rise, albeit on very thin volume.  Are you bullish or bearish?  I think the markets are headed for a BIG correction (Larry Kudlow notwithstanding) and have structured my portfolio accordingly.  Which raises the question: what is the difference between being overly pessimistic and merely preparing for the worst case scenario?  I suppose the threshold of each is different for everyone.  I'm an eternal optimist (ask my wife!) but I also find myself a fan of Roubini, Rosenberg, Rogers & Faber (Marc, that is).  Time will tell, but I'm "optimistically preparing for the worst".  How about you?