I still remember 2008 like it was yesterday. Giant financial firms like Lehman Brothers were failing. The stock market was down 50%, and even the so-called financial gurus like Jim Cramer were yelling “sell, sell, sell!” Everyone was panicking. And the SBA lender I was working for actually stopped funding loans because they lost their credit lines. The merry-go-round had stopped. Bad for almost everyone, except people who negotiated settlements for a living.
Sometimes I am amazed that it’s been almost 9 years since “the great recession”. But it has, and that’s a pretty good run since then. My business is definately slower than it was in 2011. In fact, I was looking at historical stock market returns, and the run that the S&P is on is pretty unusual. Since 1928, there has NEVER been a period longer than 9 consecutive years of positive returns. So, if you believe in historical trends, then you’d have to believe that a stock market correction is coming. And if that happens, is it possible that it will trigger another receission? And if there is anothere recession, will it trigger another round of SBA loan defaults?
Only time will tell. Stay tuned.