Co-produced with Beyond Saving
History might not repeat, but it sure does rhyme. When discussing a bear market, it's very natural for us to discuss 2008. The Great Financial Crisis is a recent market event, and for many investors their very first ferocious bear market. Since it's something that's recent enough that all but the newest investors remember, it's a very natural reference point.
Today, we want to take a step back in history, when most of us had more hair, when "Y2K" was the big threat to the world, everyone with a website was going to be a billionaire, and anyone who didn't understand that "page impressions" were way more important than cash was an old geezer who just didn't get the new world. It isn't about how much money a company makes today, it's about how much they might, maybe, possibly, make at some unknown point in the future.
That is right, we are going back to party like it's 1999.
We see a lot of similarities, particularly in how beat-up value stocks are. Stocks that pay dividends, produce real cash flow and have solid business models are still cheap, and offer today some of the best opportunities that the markets can offer.
REITs for example, took a huge hit in March, but have not recovered. Meanwhile, the broader market has recovered, pulled forward mostly by tech stocks. If you don't own a large percentage of tech, you have probably under-performed the market over the past few months.
About "FOMO"
"FOMO" is the "Fear of Missing Out." It's a habit of investors to look at their investments too frequently. This is perhaps even more true today than it was in 1999, as it's much easier to check your stocks at any second from your cell phone. Investors see stocks that are running up, and if
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