Drucker: Do we need to somehow recognize and incorporate a new level of volatility in the asset classes we use?
It depends on whether we're looking at short- or long-term volatility. Certainly 2008 was without much precedent in terms of how big the losses were and how far they stretched across all asset classes. For our year-end client communication, we studied Morningstar's entire database of 3,734 funds invested primarily in U.S. stocks. All but one lost money. Of the 978 funds invested in non-U.S. stocks, all lost money. Of the 144 U.S. and non-U.S. real estate funds, all had negative returns. And of the 128 natural resource funds, all lost money. So, if you add those numbers up, there were over 4,000 equity funds and all but one lost money.
Roger Gibson on the Market Crash
No wonder it seemed that we had no place to hide.