Do you remember how much value the stock market lost in the crashes of 2000 and 2007? I’m talking about what percent the market lost during each of those crashes.
If you’re not sure, take a guess before you read on.
The tech crash happened just 15 years ago. The S&P 500 lost 49% from March, 2000 to October, 2002. Many investors – myself included – had moved their money into NASDAQ tech stocks, which plunged 78% during that same 2-1/2-year period.
Then the S&P 500 peaked again in 2007 – just a few years later. By March of 2009, it had plunged 57%.
That makes two heart-stopping losses of more than 49% just in the last 15 years. [Read more…]