Humans are natural optimists and wishful thinkers by evolutionary design (pessimism was not a good survival trait for 150,000 years), and stock markets reflect this bias: when bad economic data appears, the market cheers for potential Fed rate cuts; when good growth appears, it cheers for profits—always finding an excuse to be bullish and over-explain good news.

causalpending

Speaker

Jeremy Grantham

Evidence Quote

“we're a very happy thinking species...Given half a chance, we will generously interpret the future...bad data = Fed cuts = market up...good growth = profits up = market up”

Source

Jeremy Grantham: Lessons from 60 Legendary Years of Investing— The Master Investor Podcast with Wilfred Frost
Created: 8/12/2026, 6:39:12 PM

My Notes

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