Thursday, October 02, 2008
One of the worst prognosticators of the late 20th century and one of the best contrary indicators of all time has just sounded the "ALL CLEAR" for investors, declaring the financial recovery and economic revival are now at hand.
This can mean only one thing for any astute individual - SELL!
This story at Bloomberg has the details:
Former Federal Reserve Chairman Alan Greenspan said financial markets and the economy will recover ``sooner rather than later'' from the worst turmoil in seven decades.A "protracted period of ... irrational exuberance"?
``Trust will eventually reemerge as investors dip hesitantly back into the marketplace,'' Greenspan said today in a speech at Georgetown University's law school in Washington. ``From that point, history tells us, financial and economic revival sets in. I suspect it will be sooner rather than later.''
``We are living through the type of wrenching financial crisis that comes along only once in a century,'' Greenspan said today. ``Financial markets freeze up as an excess of fear displaces a protracted period of what some might call irrational exuberance. Eventually the market freeze will thaw as frightened investors take tentative steps towards reengagement with risk.''
Wasn't that just a fleeting thing back in 1996?
Now it's a decade long period of irrational exuberance?