We Never Learn from History - Interesting Quotes

A friend suggested that some interesting quotes should be put on the site. Most of these quotes are those that I have come across or those that friends have sent me. Wherever possible I will acknowledge them

Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one - Charles Mackay

Insanity consists of doing the same thing over and over again and expecting the same results

Discovery consists of seeing what everybody has seen and thinking what nobody has thought”
. . . Albert von Nagyrapolt, The Science Speculates

“The main purpose of the stock market is to make fools of as many men as possible.” – Bernard Baruch


Interesting Headlines from the Past:

August 28, 1930:
There’s a large amount of money on the sidelines waiting for investment opportunities; this should be felt in market when “cheerful sentiment is more firmly entrenched.” Economists point out that banks and insurance companies “never before had so much money lying idle.”

September 3, 1930:
Market has now reached resistance level where it ran out of steam on July 18 (240.57) and July 28 (240.81). Breaking through this level would be considered a highly bullish signal. General confidence that this will happen based on recent market action; many leading stocks have already surpassed July highs. Further positive technicals seen in recent volume pattern (higher on rallies and lower on pullbacks), and in continued large short interest.

Some wariness based on recent good rally recovering all of drought-related break; some observers advise taking profits on at least part of long positions, to be in position to rebuy on good pullbacks.

Most economists agree business upturn is close; peak in business was reached July 1929, so depression has lasted about 14 months. “Those who have faith and confidence in the country and its ability to come back will profit by their foresight. This has also been the case over the past half century.”

Harvard Economic Society points to steady rise in bond prices as favorable for stocks. Says there is “every prospect that the [business] recovery … will not long be delayed,” although fall period may not be strong as expected. Notes worldwide decline in business, but 1922 recovery demonstrates U.S. due to “great size, natural advantages, and diversity of conditions … can lift itself out of depression without the stimulus of improved foreign demand.” “We only know now with perfect hindsight what these pundits did not know back then - that there was another 80% of downside left in the bear market.”