The Circle Game

“We’ve never seen this before!”

Such is current observation of many. Whether it’s the latest decline in home prices or the volatility of the stock market,  these mavens marvel at their situation’s unique status.

But things are never really new. Malcolm Muggeridge once famously observed that there’s no new news, only old news happening to new people. We’ve been here before. We just don’t remember.

Take housing. While the total US market hasn’t declined in a long time, many local markets have. In California prices declined a lot in real terms between 1990 and 1996. But their economy didn’t stop. In fact, the groundwork was laid for significant advances during the internet boom. Those who panicked during the sell-off missed a golden opportunity.

While things may be new to many, they’re unlikely to be truly unique. History doesn’t repeat itself perfectly, but it does rhyme. In the current crisis time and a little perspective will heal most wounds.

Douglas R. Tengdin, CFA
Chief Investment Officer
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

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By | 2014-09-03T18:40:22+00:00 May 6th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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