November 21, 2008

This crisis could have a happy ending

Fortune: “I was thinking about the financial mess the other day and I came up with this theory. I’m wary of it because it’s comforting, even uplifting, and by definition any economic supposition that has a happy ending is suspect. So with that caveat here goes:

I remember talking to a wise man at the end of the last decade who was pointing out to me how much the market had gone up during the 1990s and how stocks couldn’t possibly continue to go up at that rate. The market’s historical annual mean gain is about 8%, and yet between 1990 and 2000 the market had climbed some 15% per annum.” (full story)

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