Wall of worry or another brick wall?
There is no shortage of naysayers warning of impending doom. That indicates that there are still many investors out there who are capable of pushing the market to new highs
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CAST your mind back to September 2008 when Lehman Brothers collapsed. At the time, Lehman was the fourth-largest investment bank in America. The thought of Lehman being in trouble was beyond unthinkable.
But then the unthinkable happened – Lehman filed for bankruptcy after most of its clients defected. The impact on the market was both dramatic and shocking in equal portions. And what followed was as predictable as day following night. Stock markets around the world reacted in the only way they know how – they collapsed.
Admittedly, there was a lot for investors to fret over. Corporate profits were falling, and banks refused to lend to one another. All the signs at the time were that credit had seized up completely. Everything pointed to the fact that we were heading for an inevitable economic downturn.
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