Irrational Exuberance? We Are Now Below It . . .

On December 5, 1996, Alan Greenspan gave his famous Irrational Exuberance speech.

At the time, the S&P500 was at 744.38. It blew through that number today, closing at 700. We’re still 350 points above the Dow’s closing price of 6,437.10; The Nasdaq is a stone’s throw (22 points) from its closing price of 1,300.12.

In other words, the SPX is now lower than when Greenie gave his infamous speech 13 years ago, and the other indices are just above their levels when Al was suggesting that buyers had gotten too, well exuberant.

Astonishing . . .

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1996 S&P500 Daily Chart

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Source:
Remarks by Chairman Alan Greenspan At the Annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research,
Washington, D.C.December 5, 1996
http://www.federalreserve.gov/boarddocs/speeches/1996/19961205.htm

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