How should I understand the underlined?
Thanks in advance.
PESSIMISM about the United States rarely pays off in the long run. Time and again, when Americans have felt particularly glum, their economy has been on the brink of a revival. Think of Jimmy Carter’s cardigan-clad gloom in the inflation-ridden late 1970s, or the fear of competition from Japan that marked the “jobless recovery” of the early 1990s. Both times the United States bounced back, boosted on the first occasion by Paul Volcker’s conquest of inflation and on the second by a productivity spurt that sent growth rates soaring in the mid-1990s even as Japan stalled.
It could work, if you're thinking of short selling the NYSE -- if it goes down, you make money.
Given that it's about the American economy, I feel that pays off works- optimists will invest in it and make money, while pessimists at best lose a chance to make money.
Okay, maybe, but pessimists can actively invest based on their pessimism and win big. It's called short selling. You borrow stock at one price and promise to sell it back at the market price at a later date. If it goes down, you make money.
I also thought of short selling.