STOCK MARKET PERCEPTIONS

  STOCK MARKET PERCEPTIONS
In early 2000, investors had no idea that the next three years
would be horrendous. Just look at the massive devastation
inflicted on investors during the period, where over $8 trillion
in market value was erased in only 32 months from peak to
trough. The biggest bear since the Great Depression simply
mauled investors who were blindly following the buy-and-hold
mantra. Unfortunately, all of those individuals who followed
the buy-and-hold strategy watched helplessly as their investments
got slaughtered and their egos shattered. How could this
have happened?
During 1999 and 2000, the stock market was the hot topic of
conversation at the supermarkets, bowling alleys, bars, and hair
salons all across America, as the market soared to unprecedented
heights. CNBC replaced the “soaps” as the most popular daytime
entertainment medium, with its streaming stock quotes, and
never-ending procession of bullish market strategists, bullish
financial analysts, and bullish CEOs.
Euphoria was in the air and life was great for millions of
retirees, regular folk who started investing in the past five years,
and especially day traders who were racking up huge gains. But
that all came to a screeching halt when the big bear started growling
in the first quarter of 2000. The bear then unceremoniously
clawed the market over the next three years, to prices not seen for
five years.