Which type of person are you?

Bubble Meter used to get criticized by commenters for being too pessimistic. Now-a-days, Bubble Meter gets criticized by commenters for not being pessimistic enough. This may be due in part to the change in bloggers. David is more pessimistic than me, but he doesn't post much anymore. There are four different types of people, and which type you are tends to affect how you view the economic outlook:

• Perma-bears usually expect the worst.
• Perma-bulls usually expect the best.
• Lemmings usually expect the current trend to continue.
• Contrarians believe in reversion to the mean.

Most people are lemmings. Lemmings are the people who cause bubbles. When everything's great, they expect it to keep getting better. When everything's rotten, they expect it to keep getting worse.

I'd guess David is a perma-bear, although you'd have to ask him. I suspect most longtime Bubble Meter readers are also perma-bears. Lance is definitely a perma-bull.

I, however, am a contrarian. I believe that over the long run, housing prices, stock prices, and economic growth correct themselves. The long-term trend is up, but when things get too good they will get worse; when things get too bad they will get better. That is why I am currently optimistic about both the economy and the stock market over the long run. Housing prices, however, are still too high. But, at some point housing will again become a great investment.

Looking at the list, which type are you?