It’s Never Different This Time

Most of us remember exactly where we were the morning of September 11, 2001. That horrific day not only changed the lives of thousands of families in New York; it also set our country on a complicated path the outcomes and implications of which are still being debated. We will truly never forget.

2008 Financial Market Crisis

Not quite as many people will remember where they were just seven years later, on September 15, 2008, when Lehman Brothers, one of the most venerable financial institutions in US history, filed for bankruptcy. On that day, the US stock market, which had started falling almost a year earlier, plunged. Markets continued to decline and a few months later, the S&P 500 Index fell nearly 57 percent and the Dow fell 54 percent from their record highs.  It was one of the worst financial market crises since the 1930s.

And so investors’ portfolios collapsed and never recovered, right?  WRONG!

It may have seemed to some that this time was certainly different – that we would never find our way back to prosperity. And what have we learned? It’s never different this time. Those five words of wisdom constitute our fifth principle of Power of 5 Investing.

We will be tested again. We know the bears will come, but we do not pretend to know when and we certainly will not abandon stocks before, during, or after such a market. Market timing is a fool’s game.

If you are interested in learning more about the market, then we'd love to speak with you. 

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