No. of Recommendations: 1
"The S&P500 losing 57% leading up to March 2009 was pretty bad, and caused a lot of people to jettison their presumed-high risk tolerance."

Plus it is easy to cast stones at people you don't know.

I had a small, two man law firm that suffered a drop in business in 2006-7, when stocks were still roaring. A similar thing happened to my previous firm in the late 1990's. I suspect that small businesses may be the canary in the coal mine in terms of noticing a slow down in business before the recession hits.

In any event, we settled a big case in 2009 that allowed us to pay off debts both for our firm and personally and therefore allowed us to keep working and stay invested. I might not have had a choice but for that one big case.

Furthermore, none of us fully predicted the willingness and ability of the Fed to keep the economy and the markets liquidated in the ensuing years. Had that not happened I suspect that those of us who stayed fully invested would have had much tougher sledding up to this point.

I don't discount the fact that I had some luck and that I am in no position to cast stones. And I remain cautious when my stocks relentlessly gain value for no apparent reason. The last time that happened was 2006-7. The time before that was 1999.
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