25 Years in Risk Management

Quick – where were you 25 years ago?

The song, “Wannabe” by The Spice Girls was the #1 song in America in the spring, later followed by “MMMBop” by Hanson. “Men in Black” would dominate the summer box office, only to be dwarfed by “Titanic” later in the year. The San Antonio Spurs drafted Tim Duncan and the Houston Oilers football team moved to Tennessee. People were starting to worry about the dreaded “Y2K” bug.

Looking back a quarter of a century, so much has changed—from how we communicate, access and share information, to how we work and access investments, and more.

However, the need for investors to manage risk has not.

Founded in 1997, we are a leader in risk management and hedged equity strategies, focused on helping investors create and preserve wealth. We’ll look back over the last 25 years to provide observations and insights that may well serve investors seeking to manage risk today and for decades to come.

What Will Be Covered

Financial Markets 25 Years Ago

While cultural milestones like music, movies, or sporting events often serve to mark a time and a place, let’s look back a quarter of a century at the capital markets.

  • The Dow Jones Industrial Average crossed 8,000 and the S&P 500 cracked 900 by mid-summer 1997, both firsts.
  • Apple Computers was a joke.
  • com was just an online bookstore.
  • Google, Facebook, and YouTube did not yet exist.
  • Alan Greenspan had warned about “irrational exuberance” creeping into the market in December 1996, but the Dot-com bubble still had a few more years to inflate.
  • Investors could generate decent returns by holding Treasury debt, the safest of bonds.

Today, the picture is vastly different.