"A prime reason for expecting future earnings to be greater
was that we in America were applying science and invention
to industry as we had we never applied them before"
~ Irving Fisher, c 1920s
It wldnt be hard to agree with him.
Imagine you were living in a American household and you
had all these new and wonderful things pouring into the market
- stuff like cars, radios, cosmetics - etc. The future seemed so wonderful.
The tech stock of then was RCA - rising by 939% fr 1925 to 1929.
P/E ratio at its peak was 73.
What a wonderful world. It was like the 1990s all over again.
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