Drawing lessons from history and applying them to the present is a priority for Alan Wilson, a portfolio manager for CGGR — Capital Group Growth ETF. “I am looking back to look forward,” Wilson explains. One book he has found particularly enlightening is Andrew Ross Sorkin’s 1929: Inside the Greatest Crash in Wall Street History — and How It Shattered a Nation.
Sorkin, a New York Times columnist and cable television host, traces the stock market boom, crash and its aftermath. Rather than writing a straight historical narrative, Sorkin weaves together vivid portrayals of key figures who lived through the period. To do so, he drew from personal diaries, newspaper articles, architectural records and even Federal Reserve Board minutes of the period. “A great teacher can make history come alive, and the author does a great job of putting the events of 1929 into context, weaving in the points of view and experiences of bankers, fund managers and politicians of the day,” says Wilson.
The book also draws out similarities to today’s environment. It explores income inequality and how investors were seduced by ground-breaking new technologies of the time like radio stocks. “The parallels are very striking,” adds Wilson. “Ordinary citizens were speculating on these stocks as a way to ‘catch up’ economically, much like young people today talk about cryptocurrency as a way to get ahead.”