If You Have to Ask...

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you stop asking,” was the exasperated reply of the broker to
the pestering client who asked the same question over and over during
the 1974 stock-market crash: When will it end?

Nobody knew,
or could know. The broker, wiser than he realized, chose not to
serve up the windy non-answer that fills so much cable TV time today:
“Well,” he didn’t speculate, “the bear market
will end when the Watergate crisis is resolved and the Federal Reserve
gets its arms around the inflation problem and business activity
shows convincing signs of a pickup.” Instead, he blurted the
truth that bear markets end when investors give up hope.

the rest of the article

3, 2009

Grant, author of Mr.
Market Miscalculates
, The
Trouble With Prosperity
, and biographies of Bernard Baruch
and John Adams, is editor of Grant’s
Interest Rate Observer

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