The Founding Fathers Come Together
Making Sense of Chaos
The prior chapter offered a snapshot of the chaotic investment climate prior to 1929. Yes, there were some advancements in what might be considered investment thought, but there was no clear sequence of events leading to the emergence and acceptance of a broad-based investment paradigm. While 1952 is hailed as the Big Bang for Modern Portfolio Theory, it is probably more accurate to say that the Crash of 1929 led to that bang nearly a quarter century later. Pre-Crash investors might have gotten used to periodic market corrections, but the economic cycle’s turn in 1929 was different, in ...