“After the Bubble” Financial Planning, September 2002.

Instead of just reacting to the events of the moment, the editors at Financial Planning decided to step back and see if there are any permanent changes to the financial services landscape that we should be aware of.  It’s a great idea, and it produced two excellent articles.

This is the first one, by Jeremy Siegel, author (as all of you know) of Stocks for the Long Run.  Siegel notes that the last 2.5 years have seen large cap stocks drop almost 48%, just shy of the postwar record set in 1973-74.  How did this happen?

Siegel says there were two causes.  The first is a correction of the excesses of t...