Out of the Past

Historically, bear markets are followed with powerful rallies. According to Prudential Investment Management, in the past nine bear markets (going back to the 1950’s), when the market declined substantially as the economy contracted, the average first year recovery saw a 36% return. The following year showed a 12% average return.
For example, the recession of 1973-1974, [...]

Today’s financial crisis echoes a similar scandal in the 1980s - the Savings and Loan Crisis — which resulted in the failure of 747 savings and loan associations in the U.S. and ultimately cost taxpayers some $160 billion in taxes or charges on their accounts. The crisis contributed to substantial budget deficits in the early [...]