Your Wealth

What did you do during the GFC? Warning signs and lessons for investors

June 19, 2018

The collapse of Lehman Brothers in 2008 is often seen as the catalyst for the Global Financial Crisis, which wiped trillions of dollars from global markets and shook confidence in financial systems across the world.

According to veteran investor and commentator Graham Hand, the GFC actually started a year earlier in the global credit markets, but the equity markets ignored it. With hindsight, everyone had the chance to exit shares at elevated prices with plenty of notice, as the credit markets were screaming for all to see, in every part of the world.

As Graham tells Gemma Dale, panic hit the multi-billion dollar borrowing programme he was managing a full 13 months before the Lehman crisis. In this fascinating and timely podcast, Graham discusses:

  • How global funding markets effectively closed overnight, never to re-open
  • The warning signs as a subprime debt crisis swept across the Atlantic
  • How equity markets ignored the signals for over 12 months before collapsing, and
  • What he learned, including steps he takes to protect his investments from similar risks in the future.

You can access this and previous episodes of the Your Wealth podcast now on iTunesPodbean or at nabtrade.com.au/yourwealth.

 

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