What’s New About a “New Normal”? The concept of a new normal is anything but new. In fact, throughout modern history, periods of economic upheaval and market volatility have led people to assume that life had somehow changed and that new economic rules or an expanding government would limit growth. What they could not see was how markets naturally adapt to major social and economic shifts, leading to new wealth creation.
This article looks at other periods when investors had strong reasons to give up on stocks, and considers the parallels to today.