Are market crashes normal for equity markets?

The regularity of market crashes is a reminder that patience is key to investing in equity markets. The circumstances of the 2020 market crash might be unique to the coronavirus pandemic, but they lead investors to wonder: Are such drops normal for equity markets, or is this different? (See our updated article here .)

How did the financial crisis of 2008 differ from today?

The financial crisis of 2008 differs from what we’re seeing today. While the constraint in 2008 was the financial system, the constraint in 2020 is the coronavirus spread. The Fed and the government have taken more extreme measures in 2020 to avoid a full-blown financial crisis.

What is the difference between 2008 – 2009 financial crisis and 2020?

Financial crises might seem similar, but there are always key differences. Discover how the 2008 – 2009 crisis compares with what we’ve experienced in 2020. The financial crisis of 2008 differs from what we’re seeing today. While the constraint in 2008 was the financial system, the constraint in 2020 is the coronavirus spread.