I stumbled across an interesting link over at Fark that plots famous quotes from experts in their time in relation to stock market activity. I particularly like this quote, just before the crash:
“Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.”
– Irving Fisher, Ph.D. in economics, Oct. 17, 1929
And shortly after the crash:
“Some pretty intelligent people are now buying stocks… Unless we are to have a panic — which no one seriously believes, stocks have hit bottom.”
– R. W. McNeal, financial analyst in October 1929
It is interesting that even over 75 years ago the financial experts were constantly bullish regardless of what was actually happening with the economy. The same type of optimism could be found in more recent times during the technology crash. I would like to see a similar comparison of expert analysis from about 1999-2003 overlaid on a chart like this for comparison. If anyone knows of such information out there please let me know.
Courtesy of 1927-1933 Chart of Pompous Prognosticators
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.