5th March 2024

I’ve been a reader of Jamie Catherwood’s Investor Amnesia because it launched. It’s all the time crammed with attention-grabbing reminders from the previous.

Investor Amnesia is a superb reminder that we are likely to overlook that which got here earlier than. Ray Dalio put it much more starkly, noting that nothing is really unprecedented, and we have a tendency to make use of that phrase to consult with these issues we’ve not skilled in our lifetimes.

In the direction of that finish, try Catherwood’s newest venture: The Ages Of Finance: A Timeline Of Markets. You may type the lengthy historical past of finance on a timeline, both by particular matters — Equities, Milestones & Improvements, Commodities, Debt, and Manias & Crashes — or by “All Market Historical past.” It’s yet one more reminder of how uncommon really novel occasions are, and the way all the pieces previous turns into new once more.

I’ve included some samples beneath, however it is best to go try the Timeline in its entirety….

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Joseph de la Vega wrote the primary ever behavioral finance ebook in 17th century Holland. His ebook, Confusion de Confusiones, is a dialog between an Investor, Thinker and Service provider during which the Investor explains how the inventory market features. This excerpt presents simply one of many good descriptions of markets:

“This enterprise of mine [investing] is a mysterious affair, and that, even because it was probably the most truthful and noble in all of Europe, so it was additionally the falsest and most notorious enterprise on this planet. The reality of this paradox turns into understandable, when one appreciates that this enterprise has essentially been transformed right into a sport, and retailers [concerned in it] have change into speculators…

–First Behavioral Finance Ebook

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The Poyais Rip-off

Gregor MacGregor was deemed the ‘King of Con-Males’ by The Economist for pulling off the ‘biggest confidence trick of all time’. MacGregor earned this title by discovering an uninhabited piece of land on the coast of Honduras, making a fictitious nation known as Poyais, and promoting over a billion {dollars} value of ‘Poyais bonds’ in London by deceptive buyers with lies about how Poyais was a developed society. MacGregor claimed that Poyais was house to stunning structure, an opera home, parliamentary constructing, cathedral, and extra. In actuality, it was an uninhabited jungle.   –Poyais Rip-off

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The First IPO

The Dutch East India Firm formally introduced its IPO within the company’s founding constitution on March 20, 1602. The corporate invited all Dutchmen to speculate when shares turned obtainable for buy in August 1602. Most people’s capacity to speculate on this share providing was what made this primary “IPO” so distinctive, as beforehand firms raised capital from small teams of rich buyers. When the IPO subscription interval ended on August 31, some 1,100 buyers had bought shares within the IPO. Learn Extra: The World’s First IPO

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The Panic Of 1882

The Panic started as Union Générale began to face liquidity points and quickly collapsed in early 1882. Their failure despatched shockwaves all through France’s monetary markets as buyers quickly offered off shares in a determined try to attenuate losses, which exacerbated the problem. In response, French authorities stepped in with bailout measures to restrict additional harm and restore confidence in monetary markets.  –Panic of 1882

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