Loading ...Deja Vue, all over again
Reading this article, I cannot help but think, Tesla, Cryptos and FAANGS.
Gold, Silver and miners will prevail… but it is going to be ugly.
https://www.ft.com/content/ce4939c2-be4e-4cf0-9463-5c0bba70debb
EXCERPT: In 1934, Graham and David Dodd described the errors that contributed to the 1929 extreme, and the collapse that followed. They observed that investors had abandoned attention to valuations in favour of prevailing trends, while “the rewards offered by the future had become irresistibly alluring”. Moreover, the backward-looking success of passive stock ownership had encouraged investors to ignore price as an investment consideration. Graham and Dodd lamented: “It was only necessary to buy ‘good’ stocks, regardless of price, and then to let nature take her upward course. The results of such a doctrine could not fail to be tragic.”
“Graham and David Dodd described the errors that contributed to the 1929 extreme”
Bet they didn’t mention Winston Churchill, Ben Strong, or Montagu Norman.
THEY were the ones at the root of the excesses.
Churchill as Exchequer, for insisting on maintaining sterling’s FX rate vs $ at pre war rate in 1925.
Then Strong and Norman for managing NY rates at low enough levels to keep England from losing more gold given its overvalued currency. EVERYTHING FLOWED FROM THAT HUBRIS.