How far down was the Naz in the 2000 .com bubble burst?
- Thread starter SoyUnGanador
- Start date
Why???Good GOD. Now I am outright terrified.
Don't you have a well thought out risk control plan in place?
"So, who ended up holding the bag? Average investors. Over the course of the year 2000, as the stock market began its meltdown, individual investors continued to pour $260 billion into US equity funds. This was up from the $150 billion invested in the market in 1998 and $176 billion invested in 1999. Everyday people were the most aggressive investors in the dot-com bubble at the very moment the bubble was at its height — and at the moment the smart money was getting out. By 2002, 100 million individual investors had lost $5 trillion in the stock market"
It's because trading from home during the pandemic was a meme in and of itself. Now all the Gen-Z's are going "Shit, I gotta' find a job man".
From what I see, the dot.com bubble burst had a drop of 50% from its peak at 15XX all the way to 76X, and it took about two years to drop so it wasn't like a huge crash like Oct. 19, 1987 Black Monday where the market dropped 20% in one day! But honestly this time is different. There was no bubble this time first of all with regards to the tech. industry itself. They boomed due to genuine demands that stemmed from a very special and unique time posed by a pandemic that needed more involvement by technology. The only bubble that existed was created by the overdistribution of funds by our competent wuss of Biden who wanted to use $$ to pacify the mass and a relaxing of monetary policy at the same time that caused everybody to put more money into the stock market when they are all holed up at home. What they should've done, of course looking from hindsight was at least keep the interest rate unchanged or even increase the interest rate at the same time when Biden was handing out money to encourage saving so people would put any extra money into saving accounts instead of pumping them into the asset market especially when there were no available products to buy due to a drop in productivity. This would've reduced the magnitude of inflation and at the same time decrease the possibility of any bubbles in the asset market.
But of course, nobody could see that at the time. Everybody was all preoccupied with covid and that everybody's got bills to pay. We always fix everything afterward just like what Ironman says:
How far down are we going to go? That would have to depend on 1) How fast we can get off our a$$ (we cannot overly rely on foreign labour anymore because if we do we run the risk of creating another China who turns around and bite us in the end) and start working to produce shit we need, 2) How well we can supply ourselves and the rest of the world with fossil fuel for their energy needs, 3) How fast we can build robots to produce the shit we need when people still can't get off their a$$ fast enough, 3) how fast and well we can develop alternative energy to replace fossil fuel for our energy needs. The faster we increase both productivity and energy supply, the earlier the market comes back up.
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That's just correction. As long as they haven't dropped to pre-covid level, they are fine.