Flashing Back to Nasdaq 5000
Five years ago. Five faith-shattering, bowel-twisting and ultimately sobering years ago, the Nasdaq topped out at 5,132 -- a number that seems as elusive today as a cure for the common cold, but that on March 10, 2000, was just another stepping stone on the way to greater things.
Five years ago, investors could have looked back to March 10, 1995, when the Nasdaq traded below 800, and felt a gust of pride at all the wealth created in such a short time: Why, there were so many new technologies promising to make the world a better place that all a smart young CEO had to do was step outside his business school, open up his wallet, and the dollars would come flying in. Just chanting that magic mantra -- "Things really are different this time" -- was enough to ratchet the market higher.
Five years ago, it turned out, things really weren't all that different.
It's a good bet that anyone who was long in March 2000 probably wouldn't want to relive the past five years again. But at least we can console ourselves with the knowledge that we learned something from the whole bitter experience. And those lessons are important, right?After all, the most painful lessons keep us from making the same mistakes again and again. How were we to know that the Nasdaq bubble would burst in 2000, just like the Japanese stock market bubble had burst in the early 1990s, or like the Southern California real estate bubble had burst in the late 1980s, or like the emerging markets stock bubble had burst in the mid-1990s, or like the -- oh, never mind. In my own muted celebration of the anniversary of the Nasdaq peak, I went back and read a lot of news stories from March 2000. Boy, there sure were plenty of scary signs that people were acting irrationally:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV