A brilliant economist, Irving Fisher, is, unfortunately, best known for one of the worst stock predictions of all time.
On October 16, 1929 in a New York Times article Mr. Fisher was quoted, “Stock prices have reached what looks like a permanently high plateau…” after the Dow Jones Industrial Average increased six-fold over the preceding eight years during the Roaring Twenties.
Over the next month, the Dow lost almost half its value causing Mr. Fisher to go broke. The Dow ultimately went on to lose 89% of its value from its peak in late-1929 to its bottom in the summer of 1932. Continue reading “State of the Market: “A Permanently High Plateau”?”