Written by Nathan White, Chief Investment Officer of Paragon Wealth Management
I always tell investors that the market could crash anytime for a variety of reasons and if one is not prepared to endure this then they need to reset their expectations about what investing is. For the past month or two there has been a chart making the rounds that compares the current market with that of 1929. The intent of these comparisons is always that a great calamity is at our doorsteps. I have seen so many of these supposed scary comparisons over the course of my career. With most of the them (such as the current one) the data is manipulated to make some scary comparison in an attempt to get attention. I guess if you make enough predictions and you’re bound to get one right some time. After the 2008-2009 Financial Crisis there were all sorts of dire predictions and a sort of boom of the Doom & Gloom business ensued. This “business” has steadily eroded over the past five years as the market has advanced. After I saw this latest iteration appear on a local TV news website I though it appropriate to provide a little perspective and the following article offers a good satirical review (along with other rebuttal links).