Nearly a century ago, Benjamin Graham, father of value investing and mentor to Warren Buffett, wrote: One of the striking features of the past five years has been the domination of the financial scene by purely psychological elements. In previous bull markets the rise in stock prices remained in fairly close relationship with the improvement in business during the greater part of the cycle; it was only in its invariably short-lived culminating phase that quotations were forced to disproportionate heights by the unbridled optimism of the speculative contingent.
Behold the 'New Era'
Behold the 'New Era'
Behold the 'New Era'
Nearly a century ago, Benjamin Graham, father of value investing and mentor to Warren Buffett, wrote: One of the striking features of the past five years has been the domination of the financial scene by purely psychological elements. In previous bull markets the rise in stock prices remained in fairly close relationship with the improvement in business during the greater part of the cycle; it was only in its invariably short-lived culminating phase that quotations were forced to disproportionate heights by the unbridled optimism of the speculative contingent.