The financial crisis 10 years after: Lessons to remember

By Mattioli Woods

30 Oct 2017

jt.png

Ten years ago, on 12th October 2007, the main US equity index, S&P 500 reached a relatively high point of 1,561 points.

By March 2009 the index had fallen to just 683 points, effectively losing more than half its value as the global financial crisis was in its most critical phase.

Financial crises can take decades to build but ultimately do occur with regularity Capital markets have rewarded investors who remain invested over the long term

The headlines in 2009 not surprisingly fuelled a sense of panic. At the time, the global financial system teetered on the edge of collapse and only concerted government action (and taxpayer’s money!) averted a full-scale meltdown.

In the minds of some investors there is always a crisis looming that could mean the beginning of the next market “correction”. As we know predicting future events accurately or how markets will react is extremely difficult.

Those who sell or delay making new investments when markets become uncertain are employing a strategy known as market timing. The intention is often to invest once stock markets have calmed down or to buy when markets have gone even lower. This can be a high risk strategy.

Sharp falls in stock markets are often concentrated in short periods of time. Similarly the biggest gains are often clustered together. It is also quite common for a large gain to follow a big fall, or vice versa. Accordingly an investor who tries to anticipate when the best time is to invest runs a very high risk of missing the best gains. This can have a significant impact on the long term return.

James Thompson

Latest news

1

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

2

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

3

Inspired board reject takeover bid from major shareholder inspired-500x500.png

Inspired board reject takeover bid from major shareholder

29 Apr 2025

4

Pure Leisure Group Expands Portfolio with Acquisition of Twin Lakes Country Club John Morphet at Twin Lakes

Pure Leisure Group Expands Portfolio with Acquisition of Twin Lakes Country Club

29 Apr 2025

5

County’s universities join forces to help business community University of Central Lancashire

County’s universities join forces to help business community

29 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin