Is This 1998 All Over Again?

Many people have compared recent events and the current market environment to those we experienced in the latter-part of 1998.

For some interesting historical perspective on this, I invite you to check out "Cover to Cover" from BehaviorGap.com.

Here's a brief explanation of what Cover to Cover is:

The market crash of `29 didn’t make the cover of Time in 1929 or at the start of the Great Depression in 1930 when the market dropped 25%. Even with the market down 43% in 1931, Time didn’t devote a single cover to the market crash. Today’s popular publications take a different approach to covering financial affairs. From gloomy forecasts to excited predictions, every movement in the market seems to make its way onto magazine covers.

In Cover to Cover, we’ll explore the contradictions often found on these covers. They are another example of how the media makes it difficult for investors to behave rationally, especially when they encourage short-term action over long-term planning. Over time, you’ll see a pattern emerge. We hope that as the patterns become clear, you’ll feel more confident turning away from the newsstand.

In the first edition of Cover to Cover, the magazine covers of 1998 are reviewed.  The results may surprise you.

I don't have any idea what the market will do tomorrow, next week, next month or next year, but it's always valuable to keep a long-term perspective and remember that we've endured many challenging market environments in the past and will surely experience more in the future.