Source: MIS
Warren Buffett: How You Should Invest In 2023 – A Life Changing Year For Most People
If we look back to the last 10 to 15 years, the financial markets had an unprecedent growth. Specifically, 10 years after the global financial crisis bottom, the stock market scored one of its best decades in nearly 140 years. Since then, the earnings of the S&P 500 have roughly doubled and the price has more than tripled. Undoubtedly, the major catalyst for this unprecedented growth was cheap money. Because during that period the highest interest rate was 2.5% back in 2019. So, it has been easier and cheaper to access money. And as a result, this made it easier for businesses to expand, investors to make more money, and valuations to grow. By the end of 2019, it was perceived that whatever one buys, it doubles in no time. So, the bubble busted, but this time, it was a pandemic. And finally, the historic decade-long run came to an end, the investors’ enthusiasm started waning, and they started pulling out their money from the stock market. The pandemic led the world into chaos, businesses were shut down, and the financial markets collapsed. The recession was dark and the world of investment was brought to its knees.
