How The Mighty Fall

Between March 2000 and October 2002, the NASDAQ Index fell 75%, from over 5,000 to under 1,300. Of course, valuations were beyond silly at the peak, and I confess, following the collapse, I thought my children might one day see the index surpass its previous high.

Well, 12 years later, the NASDAQ is within 10% of its 2000 high. It’s not there yet, and it’s been a long slog to recovery, but it’s getting there.

The chart below, from Barron’s, shows the largest constituents then and now. The top 5 in 2000 still around, but 6-10 have all disappeared, either acquired or taken private. A good reminder how hard it is to stay on top.

• 14 Jan, 2020

  From the Kentucky Coal Mines to the California Sun

  Rupp Arena is one of the iconic venues for college basketball in the country. It is named for Adolph Rupp, the legendary ...

• 28 Nov, 2016

  Shock, Part 2 (The Asset Allocator's Dilemma)

  In Shock (Part 1) (http://blog.angelesadvisors.com/2016/11/shock-part-1/), we looked at a possible Trump economic agenda ...

• 7 Jun, 2016

  La Justice?

  I'm not French, and I'm not a lawyer. So I am certainly not a French lawyer. These facts may be obvious, but I state ...