The Current Bear Market: It Really Is Different This Time
Be careful about extrapolating too much from previous downturns.
"Happy families are all alike; every unhappy family is unhappy in its own way."
So began Leo Tolstoy's Anna Karenina, but Tolstoy might just as well have been talking about bear markets. As much as investors often try to look at past market downturns for clues as to how the current one might unfold, they're often reminded that each bear is beholden to a different set of forces as the ones that came before. What securities performed well, or poorly, last time around could behave completely differently in the current bear market.
Christine Benz has a position in the following securities mentioned above: WMT. Find out about Morningstar’s editorial policies.