What Has the Stock Market Taught Us Since 2010?
It’s always different because markets are constantly changing. Investors have more information, better technologies, better tools, etc. Economies mature, governments change policies and the make-up of the market changes.
It’s never different because human nature is timeless. To quote Jesse Livermore, “Speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”
I don’t know everything that’s changed forever because of this cycle but here is how investors would view the markets if we had 2010 as a starting point:
1- International diversification doesn’t work but foreign stocks does outperform in certain cycles
2- Market corrections don’t last long
3- You should invest in tech stocks but Tech Stocks don’t always work
4- Energy stocks stink
5- High returns in U.S. stocks are a given
6- Bear markets aren’t always over so quickly