Show caution and focus on the negative, but there is a cost

Good investing is always about protecting principal. Make money, but protect the principal. Hence, there always is a focus by investors on doom and downside. Most investment outlooks will spend a lot of time on what will potentially go wrong. They can always say, "I told you so." is something goes wrong. Most investment gurus make they reputations on predicting a crash not forecasting further good times. 

Of course, sell-side analysts skew most of their recommendations to buys over sells, but the people managing money have a greater focus on caution. Loss aversion can harm as well as protect.

JP Morgan Asset Management has provided a chart on the cost of listening to the doomsayers. These market analysts have many followers. Heeding their advice is not pretty. Caution can be costly. It plays against the long-term positive premium associated with risky assets. 

Caution is most costly right after 'bad times". While 2019 was a great year, many may be looking at their accounts and not seeing the performance. Caution after the fourth quarter in 2018 delayed putting money into risky assets in 2019. 

Negative narratives are vivid. They capture our attention and play on our fears. Downside scenarios should be assessed, but always ask about the cost of caution the same way you assess the cost of aggressive behavior.