I would like to discuss how the most money was made from the depths of the last crisis.
The lesson from 2003 (after the 2000-02 deflationary bust) and 2009 (after the 2008 GFC) is -- buy the trashiest micro-caps you can and buy a bunch. Their share prices go up the highest.
I'm going to use the Wilshire Equal-Weight 4500[...]
I realize this is an old thread and more focused on the sudden dip post-covid we saw last year, but still an interesting thought experiment for the more bearish scenarios we could find ourselves in as investors in the future. In case this is deemed worthy of reviving for discussion, I wonder how we can really compare the last two crashes to a hypothetical crash/reversion to the mean for the US market, and identifying the best practices for finding high performance assets post-crash.
To borrow what I gleaned from Hussman's data-heavy writings, the decile distribution of the current "bubble" (In terms of Mktcap/GDP) is more evenly distributed across the market as opposed to it being more focused as I understand it being in the prior crash(es).
Im a relatively new entrant into the world of investing and so am happy to return to lurking and learning from this insightful community, but thought I would probe on this topic a bit considering all of the uncertainty on the macro level I am seeing.
How to make money from this crash - Lessons from 2008
in General Discussion
Posted
I realize this is an old thread and more focused on the sudden dip post-covid we saw last year, but still an interesting thought experiment for the more bearish scenarios we could find ourselves in as investors in the future. In case this is deemed worthy of reviving for discussion, I wonder how we can really compare the last two crashes to a hypothetical crash/reversion to the mean for the US market, and identifying the best practices for finding high performance assets post-crash.
To borrow what I gleaned from Hussman's data-heavy writings, the decile distribution of the current "bubble" (In terms of Mktcap/GDP) is more evenly distributed across the market as opposed to it being more focused as I understand it being in the prior crash(es).
Im a relatively new entrant into the world of investing and so am happy to return to lurking and learning from this insightful community, but thought I would probe on this topic a bit considering all of the uncertainty on the macro level I am seeing.