It’s fair to say that investors remember the last bear market the best; the one before that is a hazy memory, and if they have been investing long enough, the one before that is almost forgotten. This is part of recency bias. If we skip over the pandemic bear burp, the 2008 global financial crisis was the last bear market. So, it’s not surprising that when a couple of regional banks fail and a large global European bank appears on the ropes, the memories of 2008 are still vivid. ‘Sell first and ask questions later’ has pushed U.S. regional banks down 25% in the past week and a half, and the big banks down 15%. All bank shares have been under pressure, with the Canadian bank index off 8%. Broader markets are down a bit, but this so far appears isolated.

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