Every bull market bust comes with lessons. One is that bull markets offer the illusion of permanence.
For example, the longer a bull market drags on, returns are more likely to be normalized and expected. When double-digit returns are all you know, the easy assumption is to expect more of the same.
It’s a repeated lesson because there’s always a new crop of investors experiencing their first bull market and some of the old crop forgets what the last bear market was like.
But some market busts are so impactful it creates a sea change. The hardest taught lesson was felt at the depths of 1932. Continue Reading…