Lessons from Market Crises

This chapter explores the parallels between historical financial crises and today's economic policies, emphasizing the enduring nature of human behavior in investing. It discusses strategies for navigating downturns, highlights the importance of historical insights, and warns against the pitfalls of over-leveraging and recency bias.

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Clay Finck is joined by Brendan Hughes to chat about his new book – Markets in Chaos. The book explores various market crises including the covid-19 pandemic, hyperinflation in Zimbabwe, the stock market bubble in Iceland during the great financial crisis, and much more.

Brendan is a Registered Investment Advisor for Lafayette Investments and has more than a decade of industry experience in investments and public finance. Lafayette Investments has $720 million in assets under management and primarily caters to high-net-worth individuals.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

02:12 - What a market crisis is.

05:42 - Why it’s important to study history as investors.

09:11 - What led to hyperinflation in Zimbabwe.

15:14 - The market crisis in Iceland that led to their stock market falling by 95%.

28:09 - The lost decade of Japan.

32:11 - Potential parallels between the bubble in Japan and markets in the US today.

47:53 - Brendan’s biggest takeaways from studying market crises.

53:44 - The US energy crisis in the 1970s.

58:06 - Companies that perform best during inflationary periods.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Brendan’s book: Markets in Chaos.
Brendan’s firm: Lafayette Investments.
Learn more about the Berkshire Summit by clicking here or emailing Clay at clay@theinvestorspodcast.com.
Related Episode: TIP542: The Crisis is Bigger Than Banks w/ Jeremy Grantham or watch the video.
Connect with Brendan on LinkedIn.
Follow Clay on Twitter.

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