GREEN VALLEY, Ariz. (KGUN) — As the U.S. stock market experienced a sharp 10% drop, erasing $5 trillion in value over just three weeks, financial experts gathered to offer insights into what history can teach us about market behavior and recovery.
On March 19, the Joyner Green Valley Library hosted a presentation led by Tucson financial analysts Ashlyn Tucker and Richard Mundinger from RMH Investment Management. Drawing on lessons from market crashes dating back to the Great Depression, the analysts highlighted the recurring themes of fear-driven selloffs, rising interest rates, and surging energy prices.
"One of the best ways we can learn and help people is by becoming students of history," Tucker explained. "When we look back at these stock market crashes, we find trends, and we get out in public to educate people."
A major factor in past crashes, Tucker noted, is emotional decision-making. Fear often prompts investors to sell off their stocks in a panic, amplifying the downturn. Additionally, rising energy costs and high levels of debt during low-interest periods can lead to greater instability when rates inevitably rise.
Green Valley resident and former bond trader Allen Klus recalled the devastating effects of the 1987 market crash. "People were so impacted that some even took their own lives," Klus said. However, he remains optimistic about current market safeguards, citing modern-day circuit breakers and stricter banking regulations as key improvements.
Mundinger suggested that concerns over recent market drops are often overblown. "We’re just in a position where there’s a lot of short-term noise," he said. "After two strong years since March 2022, many investors are selling off assets to manage tax liabilities, which happens every single year."
Both analysts emphasized that maintaining a long-term perspective and avoiding knee-jerk reactions are crucial. "More often than not, those who stay invested and ride out the volatility tend to do well," Tucker advised.
For those interested in gaining a deeper understanding of financial history and market behavior, Mundinger and Tucker offer a class through the Osher Lifelong Learning Institute (OLLI) in Tucson. Additional information is available on the OLLI website.
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Joel Foster is a multimedia journalist at KGUN 9 who previously worked as an English teacher in both Boston and the Tucson area. Joel has experience working with web, print and video in the tech, finance, nonprofit and the public sectors. In his off-time, you might catch Joel taking part in Tucson's local comedy scene. Share your story ideas with Joel at joel.foster@kgun9.com, or by connecting on Facebook, Instagram or X.
