Good Bears and Bad Bears

In this May 2007 post, we worried that the roaring bull market was making investors complacent, and hence disinclined to seek professional advice. "A moderate bear market should be good for the wealth management business," we predicted. "A crash of 1973-74 proportions is another story."

Turns out we got "another story" and then some. Perhaps the Dow's brief burst above 8,000 today means we're past the market bottom. Even so, if the experience of bank investment pros and other fee-only managers after 1973-74 is any guide, many formerly HNW investors will be gun-shy for years to come.

Take another look at that earlier post, and follow the link to John Steele Gordon's guide to past market crashes from the American Heritage archives.