The Death of American Optimism

What does it mean when the world’s greatest value investor hesitates to buy?

Bear and Bull [Adapted from Wiki Commons]

There’s been no shortage of talk recently about America’s shifting place in the world. Once, it was the country that would lead the response to any global pandemic. Now, it’s wilted in the face of political showmanship and conspiracy theories. In the void where a confident, nation-wide response should be, there’s a patchwork of half-measures run by governors and mayors who are often forced to improvise on the job. Scientists face competing priorities and deep distrust. As science journalist (and pandemic predictor) Laurie Garrett explained it, “I’ve heard from every C.D.C. in the world — the European C.D.C., the African C.D.C., China C.D.C. — and they say, ‘Normally our first call is to Atlanta, but we ain’t hearing back.’ There’s nothing going on down there. They’ve gutted that place.”

Fighting your way through a pandemic was never going to be easy. But maybe the stock market would show a different side of American exceptionalism. In March, we witnessed a historic collapse — five record down days on the Dow, bringing it to its worst full quarter since its creation. Those who stayed in the market during those eye-watering days (myself included), thought back to the financial unraveling in 2008, when massive banks tottered on the edge of…