A favorite subject in articles about investing is comparing some past period to the current one. Comparing 2008 to 1929 or to 2000.
It’s kind of a fun thing to do, look at what’s gone on before to see if things work out the same. And it’s a comforting idea, being able to use past stock market patterns to predict the future. Would that it were so easy. Unfortunately, the conditions between a past period and a current one are so different as to make the comparison meaningless. The bull market of 1982 was like none before it in it’s length and power. The 1987 market crash was unique in history as it was quick, but then over. The 2000 internet bubble didn’t affect all stocks equally. Each event is unique.
What we need to do is ignore those old charts. For good or ill they won’t tell us much about what’s going to happen going forward. Instead (as always) we have to assess where there is money to be made now, choose carefully, and let long term economics do their stuff.