Learn to Love the Market's Pessimism By Sham Gad About this article: You might find it rather useless to be writing an article at this juncture about buying stocks during moments of maximum pessimism. Yet this precise moment, when optimism abounds, shows us why this notion is so important. Buying on extreme pessimism goes against conventional wisdom, which is often loaded with lots of convention and little wisdom. Personally, I find the unconventional approach often more rewarding, and the past two years have proven why. Prior to the recession, when the economy was still booming, you could categorize businesses into two buckets: those that were thinking about risk, such as equipment manufacturer Terex, which was managing its business for cash long before we had a liquidity crisis, and those businesses that were just enjoying the good times without any regard for consequences. Learning to buy stocks at moments of maximum pessimism is a highly unconventional approach with immense value... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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