The last big event to hit the world was the Global Financial Crisis (GFC). This may be a vague memory for some readers, or not so vague for others. And now, we are experiencing Coronavirus – Covid19.
Coronavirus has impacted tons of people. Some have lost family members, businesses have been destroyed and jobs have been lost. Most Australians have superannuation that has taken a hit and Investors are experiencing drops in their portfolio’s.
Both the GFC and coronavirus have devastating effects on the human race and the economy. However, one thing that we can be almost certain about, the world will recover and the human race will thrive once again. Why are we certain about this?
This is not the first (or the second) crisis the world has dealt with. Almost every 10 years there is some sort of crisis. Let’s have a look at some of the recent ones:
- 2007-2009 – Global Financial Crisis
- 2000-2002 – Dot Com Bubble
- 1990’s – Recession
- 1980’s – Recession
- 1970’s – Energy Crisis
- 1929-1939 – The Great Depression
- 1920-1921 – Recession following WW1
Above are just some of the greater crisis’s that effected the western world in the 1900s and 2000s. Throughout that timeframe, there have been numerous others that have hit individual countries or sectors.
Why is looking at history important? Well, history show’s that each time the world is in crisis, the human race has recovered and thrived.
Have a look at this chart. It’s 100 years of the Dow Jones index that tracks some of the largest companies in the US (and a common measure of stock performance). Each time the world has been rocked by a recession, crisis or war – We have recovered and have continued to reach new high’s.