Been there, seen it
ALAN STEEL, chairman and owner of a British asset management group, has dug out an extremely interesting quotation.
It’s a comment made by the Peking Review.
The relevant section reads: “Throughout the United States, from New York to Los Angeles, from the auto city of Detroit to the steel city of Pittsburg, the picture is one of declining production, depressed markets, sharply rising unemployment, chaotic money markets and slumping stock exchanges.
“The country is in the grip of a deepening economic crisis, the worst since the Second World War.”
Well, that’s how things are today, right? The Chinese, the widely assumed owners of the world’s future, are simply spelling out nothing more than the brutal truth, yes?
That could indeed all be the case, of course.
But the above observations of the Peking Review do need some further study.
The crucial point is that they were made in the issue of 7 February 1975.
The Review’s comments of that time are actually a sharp reminder now that, while the global economy has taken its worst overall battering in the past 12 months since 1945, there have been other periods of massive crisis.
That fact, Steel argues, is strongly supportive of investors who are currently taking a cautiously optimistic view towards share markets, particularly those who have recently taken the heaviest hits.