How Can You Prepare for the Next 2008?

How Can You Prepare for the Next 2008?

In early October 2007, the S&P 500 Index hit its highest point, then lost more than half its value over the next year and a half during the global financial crisis. In the coming weeks and months, we’ll see anniversaries of other major crisis-related events (for example, Lehman Brothers collapsed ten years ago next week), and we’ll likely see a stream of retrospectives detailing what happened and offering opinions on how today’s financial climate may be similar or different from the period leading up to the crisis. Because financial markets are habitually unpredictable in the short run, it’s challenging to draw useful conclusions based on these observations. However, there are important lessons investors would be well-served to remember: Capital markets generally reward long-term investors, and having a resolute investing approach may better prepare you for the next crisis and its aftermath. But What About Really Bad Market Meltdowns? In 2008, the stock market value dropped by nearly 50 percent. A decade removed from the crisis, it may be easier to take it in stride. And undoubtedly, the years of double-digit gains that followed have also helped our perspective. But as the events of the crisis were unfolding ten years ago, […]

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Source: Retirement Researchers

How Can You Prepare for the Next 2008?

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