Heeeeee’s baaaaack…
Never mind that, historically, financial markets have always recovered — and then some — from major crises. When they pull back as much and as swiftly as they have in recent weeks, investors can’t help but wonder if “maybe it’s different this time.”
Maybe it is. Maybe all previous assumptions about market behavior are null and void. But more likely, it’s a case of “same scat, different decade.”
Digging through my archives, I found a blast from the past to support that argument. It's a piece I wrote during the darkest days of the Financial Crisis of 2008. The parallels to the current COVID-19-induced financial fear, uncertainty, and doubt are downright uncanny. And the 2020 vision of hindsight validates the recommended course of action. (Spoiler alert: If you have a solid financial plan, stick with it. If not or if something’s changed, e.g. layoff, it’s time for an update.)
As I write this, markets are responding favorably in anticipation of a coronavirus stimulus package. Still, it's doubtful we're out of the woods yet. So join me for this walk down Memory Lane if you could use a little historical perspective to get you through this latest bear encounter.
Read the article: Financial Crisis: Should I Change My Plan?