04 February 2026
In the new Research Foundation monograph “Five Financial Eras: 1973-2023,” investment veteran Brian Taylor, PhD distills five decades of global market history into a compelling framework that helps financial professionals better understand the structural shifts shaping today’s investing environment. Published by CFA Institute, the paper is both a retrospective and a strategic guide—offering historical depth for interpreting current risks and long-term opportunities.
The report identifies five major “financial eras”, each defined by dominant macroeconomic forces, policy responses, and investor behavior:
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The Post-Bretton Woods Realignment (1973-1980)
Marked by the collapse of fixed exchange rates, oil shocks, and stagflation, this period forced central banks and investors to adapt to a new world of floating currencies and volatile inflation - a sharp break from the post-war consensus.
- Disinflation and Financial Liberalization (1981-1994)
The Volcker revolution and liberalization of capital markets paved the way for a powerful bull market in equities and bonds. Global finance expanded, technology entered trading floors, and financial institutions took on new roles as deregulation gained momentum.
- The Great Moderation and Emerging Fragility (1995-2007)
A period of apparent macro stability that coincided with asset price inflation, rising leverage, and a series of market excesses - from the dot-com boom to global housing bubbles. Beneath the surface, structural risks were building.
- Crisis and Policy Experimentation (2008-2019)
The Global Financial Crisis shattered assumptions about market efficiency and forced central banks into extraordinary action. Quantitative easing, ultra-low rates, and the search for yield transformed investment strategies - and raised new questions about risk and moral hazard.
- Inflation’s Return and the Realignment Era (2020-2023)
Pandemic stimulus, supply chain disruptions, rising geopolitical tension, and the reemergence of inflation have ushered in a more complex and unpredictable environment. Investors now face higher rates, tighter liquidity, and a shifting balance between public and private capital.
What’s particularly valuable in Taylor’s work is how each era’s structural traits are mapped to investor outcomes - making it easier to connect historical regimes to current challenges. His conclusion is clear: financial markets do not evolve linearly. Instead, they are shaped by feedback loops between policy, innovation, shocks, and investor psychology.
Why It Matters for CFA Society Italy Members
For Italian investment professionals, Taylor’s analysis offers not just global context but a strategic lens through which to evaluate the challenges and opportunities ahead. As Europe grapples with persistent fiscal constraints, evolving monetary policy, and renewed geopolitical competition, this long-term framework is particularly timely.
The report also reinforces CFA Institute values - encouraging historical perspective, data-informed judgment, and ethical stewardship in a world where short-term noise can easily obscure long-term fundamentals. In a landscape shaped increasingly by automation, demographic shifts, and sustainability imperatives, understanding the recurring patterns of the past may offer the best guide to preparing for what comes next.
From pension fund allocations to private market expansion and AI-driven analytics, financial professionals are operating at a time of great complexity - but also great opportunity. This monograph is a reminder that the past offers a roadmap, not just a record.