Lessons Learned: 40th Anniversary of the Historic Bull Run

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For economic geeks like ourselves and those old enough to remember, this week will be seen as the anniversary of one of the greatest bull markets in history. It was on August 12, 1982, that the Dow Jones Industrial Average dropped to its low of 777 (lucky number) —almost For economic geeks like ourselves and those old enough to remember, this week will be seen as the anniversary of one of the greatest bull markets in history. It was on August 12, 1982, that the Dow Jones Industrial Average dropped to its low of 777 (lucky number) —almost precisely where the Index had closed in January 1964, more than 18 years earlier!

When you look back through the history of the stock market, you’ll find some long periods of stagnation but some extraordinary periods of growth and prosperity.

In fact, the 40th anniversary of the longest bull run the stock market has ever seen is happening now. After a rough 18 years, the Dow Jones Industrial Average dropped to its low of 777 and many people were fearful of putting their money in the market. A diversified plan didn’t really include US stocks at that time because of the tumultuous times they were coming out of.

But that time launched the strongest bull run ever, which wrapped up at the turn of the century and produced incredible runs over many years. What have we learned since this historic bull run and what lessons can we apply now? On this episode, we’ll take a closer look at the events that impacted the market over the last few decades and talk about the behaviors that resulted from investors.

In the end, you‘ll see that many of the same mistakes get made but proper retirement planning solves many of the worries people end up having.

Here’s some of what you’ll learn on this episode:

  • Human nature doesn’t change and we’re still prone to the same financial mistakes today that we were back then. [5:10]
  • The issues the dealt with through the 60s and 70s seem remarkably similar to what we’re experiencing now. Guess what coming out of those tumultuous years? [7:49]
  • Why proper diversification could have produced really good returns during The Lost Decade to start this century. [11:25]
  • The major mistakes that we make when we’re near or in retirement. [16:40]

If you want to discuss your investing strategy or have someone give your portfolio a second opinion, please reach out and we’ll set up a time to talk.

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ABOUT YOUR HOST...

Donald W. Cash – CPA, CFP®, is an independent advisor. After graduating from Rutgers University, he began his career in 1985 as an accountant. In 1990, he entered the field of Estate Planning, concentrating on long-term care planning. Don has been advising clients in the baby boomer and retirement market for 20 years. He has helped over 1,000 families with their planning needs.

Don advocates for a holistic approach to Estate and Financial Planning and has relationships with other professionals including Attorneys, CPA’s, Mortgage Specialists, Insurance Specialists and Asset Managers.

He is married to Cathy and they have 4 children, Carly, DJ, Nick and Tori. They live in Freehold, NJ.

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