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Nifty Fifty Losses
- In 1969, many banks focused on the 'Nifty Fifty', believing no price was too high.
- These stocks, considered the best, lost over 90% by 1974, proving quality doesn't guarantee safety.
Risk-Return Mindset
- A major shift occurred with the adoption of risk-return thinking in investing.
- Investors now evaluate risk relative to return, a significant change from 50 years ago.
Volcker's Inflation Fight
- The 1973 oil embargo triggered rapid inflation, exacerbated by automatic cost-of-living adjustments.
- Paul Volcker's 20% Fed funds rate in 1980 finally brought inflation under control.