Wikipedia defines cynicism as an attitude characterized by a general distrust of other’s motives. Investors would be well served by maintaining a healthy level of skepticism regarding other’s motives when evaluating projections and other factors surrounding an investment decision. Think Theranos.
Consider the recurring attacks on the safety of cruising. Now the CDC says don’t go, yet the CDC does not appear to have a problem with 40, 50, even 60,000 unmasked individuals sitting shoulder-to-shoulder in an indoor stadium to watch a football game. And then there is the question of bathrooms in large venues. You know what I mean.
With Covid-19 infections running rampant throughout the general population, it would be essentially unbelievable if some people didn’t develop assorted illnesses on cruise ships, supermarkets or any other location where strangers gather.
A cynic might think that one of the reasons the cruise industry is the government’s favorite piñata is that most cruise ships are foreign flagged and don’t have to adhere to U.S. tax and labor laws.
Like many other things, a little cynicism is probably wise, too much can be harmful.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA