“the market can remain irrational longer than you can remain solvent.”

Don’t believe everything you read on the Internet

For example, more than a million Google search results, thousands of articles and dozens of books and investment letters will tell you, without evidence, that the great economist John Maynard Keynes said “the market can remain irrational longer than you can remain solvent.”

The man who actually said it 36 years ago, Wall Street veteran Gary Shilling, is no slouch at the dismal science himself and, unlike Lord Keynes, is still with us at age 85. He has some opinions about how rational the recent stock market rebound is: 

After the mildest of bear markets, the hardest-hit companies, many still unprofitable, have been leading a recovery the past eight weeks. Dr. Shilling is skeptical, saying stocks never reached their “puke point”—a stage of despair that serves as the basis for a sustainable rebound.

Spencer Jakab WSJ 12 August 2022 

https://www.wsj.com/articles/peloton-rivian-amc-gamestop-stock-market-psychology-11660250193

Gary Shilling on my blogg

https://englundmacro.blogspot.com/search?q=Gary+Shilling