A whole new crop of investors is learning that bear markets are a fact of life and should adjust accordingly.
The wealth destruction over the last few weeks has been brutal. Markets are down more than 20% from the start of the year; we are officially in a bear market. One estimate (from last week) said household net worth fell 0.4%.
A bear market is never good, but this time it's especially worrying because in the last few years stock investing has become trendy, with TikTok stars becoming the new investment gurus. Now many of these new investors are learning TikTok is not the best place to get investment advice.
Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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