As is the case with most unpleasant experiences, lessons were learned. When a situation looks too good to be true, it usually is. The euphoria in late '99, culminating in March 2000 saw the level of the indices, along with many stocks, break to new highs at a breakneck speed. In the case of tech stocks, a number of companies rose more than their growing earnings could justify. As for the internet group, these stocks roared even though many are years from making a profit and a number in the sector possibly never will.
Volatility can create havoc.
When the markets are jumping higher, not a soul complains about the volatile market conditions. Volatility on the downside creates a good deal of pain and lessons learned. Should a stock increase in value, you can always raise the stop loss. Asset allocation is alive and well. Many investors have just experienced their first down year ever.