The Long Term Investor

Financial History’s Biggest Lessons and How Past Crashes Can Guide Your Investing with Mark Higgins (EP.204)

14 snips
May 14, 2025
Mark Higgins, author of "Investing in U.S. Financial History", shares insights into how understanding historical market crashes can give investors an edge. He discusses the surprising parallels between past crises and today's economic climate. Higgins emphasizes the importance of investor psychology and warns against emotional decision-making. He explores how politics and inflation have shaped market behaviors historically. With pragmatic lessons drawn from financial history, he guides listeners on building resilient long-term portfolios.
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INSIGHT

Human Behavior Drives Market Repetition

  • Human behavior in financial markets changes very slowly, causing investors to repeat mistakes over time.
  • Studying financial history lets investors avoid errors and seize overlooked opportunities without waiting to gain personal experience.
INSIGHT

Long-Term Market Regime Cycles

  • Major market regime changes last about 40 years and often follow wars or natural events.
  • Current U.S. policy shifts reflect coming to terms with unsustainable fiscal deficits and mounting debt.
INSIGHT

History Reveals Crisis Patterns

  • Financial crises often show repeating patterns across a century, despite appearing different in details.
  • COVID-19 market reactions resembled past events like WWI and the 1919-20 inflation period.
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