One of my favorite quotes along these lines is, “History does not repeat nor rhyme. It instructs.”
That's Tim Snyder, in On Tyranny. Fantastic book for those interested in the downfall of liberalism in Germany, Italy, and Russia in the 20th century.
But just as in politics, we can apply the same thinking to markets. No, this shock won't look like the 1970s—we were beholden to foreign oil supply in the 70s. History doesn't know about the shale in West Texas, but we do, so we can let it instruct us on what comes next. We know what to look out for (people are generally misusing "stagflation," but the lesson was clearly learned by some of us), and what to do next.
Markets are always forward-looking, and eventually, they will start to look beyond the consequences of the current situation in Iran.
You'd like this Schwab note that hit my desk the other day:
One of my favorite quotes along these lines is, “History does not repeat nor rhyme. It instructs.”
That's Tim Snyder, in On Tyranny. Fantastic book for those interested in the downfall of liberalism in Germany, Italy, and Russia in the 20th century.
But just as in politics, we can apply the same thinking to markets. No, this shock won't look like the 1970s—we were beholden to foreign oil supply in the 70s. History doesn't know about the shale in West Texas, but we do, so we can let it instruct us on what comes next. We know what to look out for (people are generally misusing "stagflation," but the lesson was clearly learned by some of us), and what to do next.
Markets are always forward-looking, and eventually, they will start to look beyond the consequences of the current situation in Iran.
You'd like this Schwab note that hit my desk the other day:
https://www.schwab.com/learn/story/ups-and-downs-stock-market-volatility
Cheers, Nate!
Thanks for the comment Jack.
Like you said, markets are always forward looking, and the simple dichotomy of an investor being grounded in the truth is scarce.
Interesting times we live in… if my articles lead one person to become forward thinking in the market I’ve done my job.