Stock Values Anticipating Golden Age
2026-02-12 23:58:19.670207+01 by Dan Lyke 0 comments
Forbes, June 15, 1929: Stock Values Anticipate Golden Age by R.W. McNeel.
In part the great advance in the industrial stocks has been due to a change in investment psychology. In years past there was a point at which a bull market should logically stop. That point arrived when prices advanced to a level where the average yield of high grade stocks was no more than the yield on high grade bonds. Since common stocks carry the risks of business it was believed they should not sell to yield less than the securities which did not carry the risks of business.
In the last few years, however, the mental outlook of investors has changed. The income return on stocks has been at a discount and prospects of future growth have occupied almost the entire attention of investors. As a result, securities which offered the investor nothing but stability of earning power with a fair income return have not been desired, but those which seem to offer possibilities of great expansion have been in demand even at prices far beyond anything justified by current earnings or income return.
Start at page 18 of the PDF...
By way of this thread that's got a whole bunch of choice bits of history...