Thursday, May 3, 2012

Benjamin Roth quote (May 1932)

From The Great Depression: A Diary:

“Again I question if any man could have foreseen the severity of this depression. Both stocks and commodity prices are back to 1899 level. Those men who were wise enough to sell during the boom and then keep their funds liquid in the form of government bonds, etc. were not far-sighted or patient enough to wait almost three years to re-invest. Most of them reinvested a year or more ago and now find stock prices have sagged to 1/3 of what they were when they thought they were buying bargains. Of course they will come out ahead if they can hold on long enough and—most important of all just now—if a receivership does not intervene. Patience, rather than boldness, seems to be required just now.”