"An optimist is a person who sees a green light everywhere, while a pessimist sees only the red stoplight.... The truly wise person is colorblind."I have often written that both perma-bears and perma-bulls are attention-getters, not money-makers.
-- Dr. Albert Schweitzer
And they never ever or rarely make money.
Ironically, the perma-bear crowd is typically uninhabited by money managers. For example, the largest and highest profile short seller, Kynikos' Jim Chanos, is not a perma-bear. Jim systematically searches for broken or breaking business models, and he understands market and company-specific risk/reward. Nor was my friend/buddy/pal David Rocker a perma-bear. He, too (before he retired from Rocker Partners), identified adverse secular changes facing companies and, similar to Jim Chanos, had an uncanny ability to unearth frauds like Baldwin United, Enron and Lernout and Hauspie (among many others).
Rather than managing money, the perma-bear crowd is typically inhabited by writers of market letters, investment strategists and economists turned strategists, all of whom have little or no skin in the game. They also make a lot of speeches during downturns for a helluva lot of money and often write editorials in the Financial Times, New York Times and Wall Street Journal.
By contrast, the job of a money manager is not to be dogmatic. And to paraphrase Jim Cramer, neither is it to make friends; it is to make money.
The perma-bear species is a fickle breed, especially in its ardor for purging from its ranks anyone who breaks the faith. Woe betide a former perma-bear deemed less bearish!
In summary, perma-bears, similar to their first cousin perma-bulls, rarely make money and, in the main, shouldn't be listened to most of the time as even when they call a downturn, they almost always overstay their positions.
And they may be harmful to your financial health.