My mom always told me that in every painful experience there lies a very powerful lesson. Same theory holds true in the world of investing. The year 2000 started off with a vigorous sprint, piggybacking on the phenomenal success of previous years. Then spring came and all of a sudden the train just lost its steam. Things just never seemed to recover for the rest of year.
Markets go up, markets go down, and that s the nature of the beast.
The vertical performance of the market has been unprecedented. But, all good things must come to an end and the year 2000 served as a reality check for many that were living in a market bubble. Like lemmings to the sea, those that blindly followed the herd got hurt and hurt bad. Investors that loaded up on tech late last year are now being severely punished. Ouch, now that s a painful lesson if you asked me.