Jay Pestrichelli, ZEGA Financials' CEO joins Derek Moore to walk through how this bear market compares to the 2008 Financial Crisis, 1997-1998 Asian Contagion, and 2000-2001 Dotcom crash. Are all these bear markets the same? Jay explains his rule of 3 showing the catalyst in each and how they are different. Plus, Derek describes how this last sharp decline resembles the trading action in August of 1998. What lessons can we take out of bear markets with regards to how sectors and regions tend to revert to the mean?

Discuss Charles Schwab commercial adding perspective to long run history in markets

Speed of this bear market compared to previous ones

Personal recollections of the last couple bear markets

Surprising data from the 1997-1998 bear market in emerging markets vs US equities

Trading halts and curbs

The case again for using hedges in building portfolios

Discussion of various catalysts behind previous bear markets

Not all bear markets have a recession as well

Reversion to the mean in historical sector returns

Mentioned in this Episode:

Jay Pestrichelli previous podcast appearances https://zegafinancial.com/in-the-news/podcast

Callan Periodic table of investment returns by sectors https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf

Older Time frames Callan Periodic Table of returns including emerging markets https://www.callan.com/wp-content/uploads/2017/02/Callan-PErTbl_Collection_2017-1.pdf

Contact Derek www.razorwealth.com

Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr