The Financial Crisis of 2008 was caused by a housing bubble fueled by excessive leverage and risky lending practices. As home prices declined and credit tightened, consumers and financial institutions were squeezed, resulting in a recession. While the recession may be longer than expected due to deleveraging, history shows that technological innovation and global trade will support long-term economic growth. To navigate the current volatility, investors should stick to their long-term plan and take advantage of opportunities while maintaining a diversified portfolio and emergency funds.
![It started with what was called: “The Great Moderation” ,[object Object],Real GDP Year-on-year change 1948-2008](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)