About once a quarter, our advisory team chooses a book that helps us zoom out, to revisit the foundational moments that shaped our past and influence our future. 1929 by Andrew Ross Sorkin offered that. The book isn’t just about a market crash, it’s about human behavior: confidence, fear, leverage and the illusion that “this time is different.”
A Few Reflections from Our Team
1. The biggest risks rarely look like risks at the time
In 1929, optimism wasn’t irrational, it was widely shared and reinforced. Markets were rising, innovation was accelerating, and participation was expanding.
Beneath that optimism was a growing reliance on leverage (borrowing) and a belief that markets would continue upward indefinitely.
How we carry this lesson to today:
It’s easy to be greedy when conditions are good and optimism is high. It’s harder to stay invested in a strategy that feels like you’re “missing out” while others are benefiting. During challenging times, it’s easy to be frightened and feel like your investments will “never recover.”
Our message:
“Stay the course — discipline in both booms and downturns is the key to lasting investment success.”
2. Diversification is easy to overlook until it matters most
Many participants in 1929 were concentrated not just in markets broadly, but in similar ideas and areas of the market. When the tide turned, there weren’t many places to go.
This reinforced something we believe strongly in:
Diversification can feel unnecessary in strong markets, but it’s what creates resilience when market conditions change.
3. Clarity beats prediction
Perhaps the most humbling takeaway is how few people anticipated what was coming and how quickly conviction shifted in hindsight.
It’s easy to look back and find warning signs. It’s much harder to act on them in real time. That’s why our conversations with clients aren’t centered on predicting the next downturn.
They’re centered on building clarity around goals, tradeoffs, and aligning wealth to that purpose so decisions don’t have to rely on perfect foresight and your portfolio has the resiliency to weather the storm.
Why This Still Matters Today
While the details have changed, the patterns haven’t. Periods of expansion still bring confidence, innovation still fuels optimism, and markets still test our discipline.
Reading 1929 didn’t give us a roadmap for the next cycle—but it reinforced something more valuable:
A well-constructed plan doesn’t depend on getting the timing right. It depends on staying aligned when conditions inevitably change.
Please note: All services provided by Andrew Ross Sorkin, are separate and independent of JNBA Financial Advisors, LLC. Due to various factors, including changing market conditions and/or applicable laws, some of the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors.
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