This Day in Market History: The Infamous Robert Froelich Interview

This Day in Market History: The Infamous Robert Froelich Interview
A Wall Street sign is seen at the New York Stock Exchange (NYSE) in New York City, on Jan. 4, 2022. Angela Weiss/AFP via Getty Images
Benzinga
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Each day, Benzinga will take a look back at a notable market-related moment that happened on this date.

What Happened?

On Jan. 18, 2000, Kemper Funds chief investment strategist Robert Froelich gave an infamously ill-timed interview recommending investors buy tech stocks at any price at the height of the dot-com bubble.

Where Was the Market?

The S&P 500 finished the day at 1,455.14, and the Dow Jones Industrial Average stood at 11,560.72.

What Else Was Going On in the World?

In 2000, the state of Vermont passed HB847, a law which legalized same-sex civil unions. Microsoft Corporation co-founder Bill Gates stepped down as CEO of the company. The average cost of a new house in the United States was $134,150.

No Price Too High

In an interview with the Wall Street Journal, Froelich made a number of statements about the frothy tech market that are painful to read in hindsight.

“It’s impossible to pay too much for a good stock,” Froelich said. “We see people discard all the right companies with all the right people with the right vision because their stock price is too high—that’s the worst mistake an investor can make.”