The Depression generation came out of the experience wanting to save and avoiding stocks, even though at the time the dividend and earnings yields on stocks were about twice the bond yield, meaning stocks were objectively cheap and had to rise to equalize returns - their mindset was a behavioral reflection of the cycle rather than rational valuation.

factualpending

Speaker

Ray Dalio

Evidence Quote

almost everybody at the depression came out of that wanting to save turn the lights off son eat that food

Source

Ray Dalio on AI, Job Loss & the Future of the Economy | EP #148Peter H. Diamandis
Created: 6/18/2026, 1:59:18 PM

My Notes

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