Transcripts

"Money File"-The Legacy of Sir John Templeton

SUSIE GHARIB: In the "Money File" tonight, the wisdom of Sir John Templeton. Here's Chuck Jaffe, senior columnist at Marketwatch.

CHUCK JAFFE, SR. COLUMNIST, MARKETWATCH: Years ago, Sir John Templeton identified the four most dangerous words in investing as "this time, it's different." Well, for the investment world in the current, distressed market, this time it is different, because for the first time since the Great Depression, Templeton is not around to act as a reminder of the resiliency of markets. The legendary investor died last week at age 95, with the market appearing poised to reach the condition he was most famous for identifying -- the point of maximum pessimism. Templeton described maximum pessimism as the point where there were no buyers left -- except for him, of course. As an arch-contrarian, it was precisely the time he found things most attractive, the time to keep your head above market sentiment, the time when you someday look back and go, "that stretch, right there, that is where I made my money." Now, don't forget that Templeton began his investing career in the 1930s, when the Great Depression was still dampening market enthusiasm. In 1939, he famously bought $100 worth of every stock selling for a buck or less on the New York Stock Exchange, and in time, he made a killing. What's clear from everyone who knew the man is that he would have loved the current market environment. He would have preached international diversification, reminded people to go against the herd, and suggested that it's time to be calm and focused, and to leave the pessimism for others. And unless this time it really is different, it's likely that the market will prove him right, again, in time. I'm Chuck Jaffe.