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First, the bubble that built up in the industry before the global equity crash has passed.
These returns include the horrendous equity crash in 2008, so you can imagine how high those annual numbers were in 2007!
Draper's theory is that venture booms always follow private-equity crashes.
By holding interest rates low for so long after equities crashed, the Fed helped to inflate house prices.
Thus intelligent asset allocation can give you valuable diversification if equities crash.
In 1962, equities crashed on a 1929-like scale, the result of Washington's gestapo tactics against the then-mighty steel industry for raising prices.
If the Marlboro Man had crashed, well, then, brand equity had crashed as well.
Still, one can't exclude the possibility that some crisis somewhere in the system will bring equity markets crashing down.
If equity markets crash, central banks will reduce interest rates to pump liquidity back into the system, causing long-term bond prices to rise.
The investor dialed Libin saying they had seen 60percentt of their fund value vanish into thin air as equity markets crashed on Lehman Brothers' bankruptcy filing.
For the bottom 90percentt, since the late 1980s, the value of home equity has crashed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com