It has been 10 years since Lehman Brothers collapsed. This watershed event had an impact on financial markets and economies around the globe. In India, the benchmark Sensex shed a staggering 52.48 per cent during the calendar year 2008. Liquidity dried up within the debt market, while the real estate industry was hamstrung by lack of funding. Job losses and salary cuts led to demand contraction. A decade later, investors need to imbibe the lessons from that black swan event so that if another one of a similar magnitude strikes, they are better prepared to handle it.
Over-exuberance leads to