Oct 08 2008
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As Dire as the Times May Seem, History Isn't About to Repeat Itself
Remember that we’ve been through tough times before. The Internet bust was almost as extraordinary as the 1929 crash: Between early 2000 and late 2002, the tech-heavy Nasdaq index fell almost 80%. You may recall the speculative real-estate lending that resulted in almost 2,000 bank failures between 1987 and 1991, and the Dow plunging 22.6% in one day in 1987. While none of those were pleasant, you’re still here.
Stay the course. You know this, but it’s a time to return to the basics. Live within your means. Reduce your debt. Keep saving — and investing. When the cycle turns, and it will, you’ll be glad you did.