In the 1890s and early 1900’s, we had recessions every two years.
From 2009 to 2020, we enjoyed an 11-year bull run, the longest bull run in history. And when we finally had a recession, it lasted only two months. It was the shortest recession in U.S. history.
The duration between recessions is growing longer (these days, we average 10 years between recessions, as opposed to two years at the turn of the previous century).
And when recessions strike, we recover faster. The average length of recessions is growing shorter.
What does this mean? If we project these trends into the future, are we bound for the end of recessions?
That’s the question that kicks off this discussion with Ben Carlson, Director of Institutional Asset Management at Ritzhold Wealth Management and the host of the Animal Spirits podcast.
Here are some other topics we discuss:
- The democratization of finance. It’s never been a better time to be an individual investor. Products that were once only available to elites — such as access to IPO’s — are now readily available to mom-and-pop investors. But with this comes the need to understand how to invest, which makes financial education and investor education more critical than ever.
- Crypto, NFT’s, and SPACs. The financial markets are flooded with new investment vehicles and digital financial products — and your take on these probably reflects your age. Millennials entered adulthood in the aftermath of the Great Recession, when finding a job was relatively tough. Gen Z, by contrast, is entering adulthood after an 11-year bull run, and even when we did experience a crash, it only lasted for two months. The risk appetite between these two generations couldn’t be more different, and Gen Z investors seem particularly eager to embrace more volatile assets and platforms.
- Finance mindset vs. tech mindset. People in finance are always looking for the downside — “what’s the risk?” — whereas people in tech are always asking “what’s possible?”
If you want to listen to a wide-ranging conversation about the current investing landscape, you’ll love this interview with Ben Carlson.
- How to Stop Screwing Up Our Finances | Podcast episode
- A Wealth of Common Sense | Website
- A Wealth of Common Sense | Book
- Animal Spirits | Podcast
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