Comparing Bear Markets Through the Years and Lessons Learned
Broken Pie Chart · Broken Pie Chart
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Show Notes
Jay Pestrichelli, ZEGA Financials' CEO joins Derek Moore to walk through how this bear market compares to the 2008 Financial Crisis, 1997-1998 Asian Contagion, and 2000-2001 Dotcom crash. Are all these bear markets the same? Jay explains his rule of 3 showing the catalyst in each and how they are different. Plus, Derek describes how this last sharp decline resembles the trading action in August of 1998. What lessons can we take out of bear markets with regards to how sectors and regions tend to revert to the mean?
Discuss Charles Schwab commercial adding perspective to long run history in markets
Speed of this bear market compared to previous ones
Personal recollections of the last couple bear markets
Surprising data from the 1997-1998 bear market in emerging markets vs US equities
Trading halts and curbs
The case again for using hedges in building portfolios
Discussion of various catalysts behind previous bear markets
Not all bear markets have a recession as well
Reversion to the mean in historical sector returns
Mentioned in this Episode:
Jay Pestrichelli previous podcast appearances https://zegafinancial.com/in-the-news/podcast
Callan Periodic table of investment returns by sectors https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf
Older Time frames Callan Periodic Table of returns including emerging markets https://www.callan.com/wp-content/uploads/2017/02/Callan-PErTbl_Collection_2017-1.pdf
Contact Derek www.razorwealth.com
Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr