We live in interesting, though not unprecedented, times. The Roaring 1920s could be a precedent for the Roaring 2020s.
The good news is that the bad news during the previous precedent was followed by the Roaring 20s. So far, the 2020s has started with the pandemic, but there are plenty of years left for the prosperous 1920s to become a precedent for the current decade.
The 1920s ended with a stock-market melt-up followed by a meltdown. The 2020s may already be seeing a melt-up, begun on March 23.”
1920 also marked the end of a 20-years of economic destruction. A series of events rocked the turn of the 20th century, which deeply suppressed financial markets. ((Imagine 20-years with negative total real returns.)
- Panic of 1907
- Recession in 1910-1911
- Recession in 1913-1914
- World War I ran from 1914-1918
- Economic Depression in 1920-1921