Market News
Remembering the lessons of the last market bubble
Tuesday, 02 March. 2010
Get out your calendars, folks. It's time to celebrate -- or perhaps mourn -- the 10th anniversary of one of the epic financial events of our time: the peak of the great stock market bubble in March 2000. That's the month when the Nasdaq composite index, the Standard & Poor's 500-stock index and the Wilshire 5000 all reached new highs, then headed south, big time. (The Dow Jones industrial average peaked that January, but who cares? It's just a crummy 30 stocks.)
No, this isn't yet another article about the "decade from hell" and the $3.6 trillion of stock market value that Wilshire Associates calculates has vanished since the Wilshire 5000 peaked on March 24, 2000. (The S&P peaked the same day, two weeks after the Nasdaq reached its highest value.)Rather, I want to show you how, even though popular perceptions of Wall Street and markets and the government's role have changed, the institutions involved haven't, and probably never will. As an investor -- or just a plain old citizen -- you'd do well to remember that.