It has been 20 years since the tech bubble burst. And it has been 12 year since the Bear Stearns bailout ushered in the Great Financial Crisis of 2008.
Lost in the shuffle? Long-term investing results.
Over 20 years, “risk-free” Treasury bonds have handily outperformed “risk-on” stocks. Gold has been the biggest gainer of them all.
Here’s another shocker. Long-term Treasuries have even outperformed stocks over 40 years.
Credit or blame the Federal Reserve. Committee chairs from Greenspan to Bernanke, Yellen to Powell, chose to “fix” every recession/crisis with ever-lower rate policies.
The Fed “fixed” the 2000 Internet Bubble by blowing the Real Estate Bubble. They “fixed” the 2008 Real Estate Bubble by blowing a 2020 All-Asset Bubble.
Can they “fix” the current situation by inflating a fourth bubble for stocks? Probably not before a number of rallies/bounces fail.
In spite of massive Federal Reserve and federal government intervention, six bear market rallies of 9%-19% failed in 2008. The stock market bottom did not arrive until March of 2009.