The Worst Market in 70 Years? (Part 2)

Is this the most volatile market in 70 years? By some measures it is. The ups and down in the stock market have been hard on investors. They play havoc with people’s expectations, and lots of people are wondering if the system is broken.

While the present challenges are serious, they pale in comparison to crises of the past. For example, in the mid-‘70s we were facing accelerating double-digit inflation, a domestic political crisis, and an aggressive Communist enemy. No wonder the S&P traded at only 8 times earnings!

By contrast, we’re worried today about an increase in top-line inflation from 3% to 4%. Our financial concerns are significant, but the only serious failure so far has been Bear Stearns. And our geopolitical enemy doesn’t carry the weight that the Soviet Union did.

If we could get through the ‘70s, we can get through today’s issues. My advice to the whiners on Wall Street is to get some perspective.

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

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By | 2014-09-03T17:57:04+00:00 April 4th, 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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