Investment lessons from the global financial crisis

Historical comparisons can be useful in thinking probabilistically. On most valuation measures, the global equity market still appears on the expensive side.

Dan Kemp 26 November, 2018 | 6:00PM

Few investors had the foresight in March 2009 to predict where we would be today after a nine-plus-year bull market. In fact, if you knew in 2009 what lay ahead, your level of disbelief may have been as strong as if someone told you in September 2017 that the market would soon lose half its value before turning around.

This has many inherent lessons, but none more than the avoidance of short-term thinking and the power of starting valuations.

Lesson from the Decade Since the Crisis

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Dan Kemp

Dan Kemp  Dan Kemp is Chief Investment Officer, Morningstar Investment Management EMEA.

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