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2008 and 2022 have many similarities: Stock markets crash, housing collapses, high levels of debt and investor portfolios crumble.
But there are several differences: ’08 was led by a housing bubble – today’s crash was primarily caused by a reversal of monetary policies.
Inflation was also healthy in 2008, and the central bank has already raised rates for several years.
However, investors compare the two market declines:
The white line represents the S&P 500 in 2022. If 2022/2023 follows 2008 – we could be in for another significant shift.
That’s a big “if.” And all speculation.
One of the biggest questions is whether or not the markets have bottomed out – and no one really knows the answer.
But if you’ve bought anywhere near the bottom during past market declines – you’ll have done well in the years to come.
Just ask investors in these companies—it’s made massive returns since the 2009 bottom.
Some takeaways:
- Three During this period the S&P 500 companies became the 100 Bakers.
- Six These stocks were short $500M At their bottom in market cap.
- The largest is Apple (~$76B market cap), Nvidia (~$4B) and Netflix (~$2B)
In 2009 it was rare for a company the size of Apple to deliver such a large return. Stocks with high volatility are generally seen as stocks Small market capitalization – but they are also dangerous.
However, small-cap companies tend to benefit more when the economy recovers – making it an attractive hunting ground.
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