Josh Brown

This is me, not Peter.

This was like an ironclad rule.

Anytime they diverged, or I'm sorry, anytime they converged, stocks were overpriced and stocks crashed.

That was like an ironclad rule, like you knew what to do.

Okay, so then Peter says, it was a really unique experience.

It wasn't supposed to happen because stocks are supposed to be riskier than bonds.

I had two older partners.

They were 15 years and more older and they were veterans of the depression.

And my closest friend in the firm, he always calls me kid.

He said, don't worry, kid, this will reverse itself.

This is unreal and not to be sustained.

This will reverse itself.

Well, I'm still waiting.

Stocks have yielded less than bonds ever since.

And so in my experience, this was the single biggest event.

And I never forget it because it proved to me that when people say something can never happen,

and for 200 years it couldn't, hadn't, then anything can happen.

So then the interviewer was asking him about, he's like, wait, you're telling me that in the 1950s, which was a fantastic bull market, if you look at a chart of stocks by decade, 1950 is the only decade that literally went from the lower left to the upper right, almost uninterrupted.

Like it started at the low and ended at the high.

It was a fantastic decade for the stock market.