There’s something about round numbers that gets investors riled up. Witness: tons of news around today about the Nasdaq topping 3000.
We hate to rain on the parade, but that’s still nearly 42% below the all time high of 5132.52 it reached on 3/10/2000.
Don’t get us wrong, the up move of 137% from the lows in 2009 through now is impressive, and reaching its highest level in 11 years is great. Unfortunately, that still leaves us with the uncomfortable fact that those 11 years were all spent in drawdown. If you invested in December of 2000 and held on until today, your money went exactly nowhere for that 11 year stretch.
And what about those investors told to buy and hold at the highs who are still staring losses in the face?
Choosing your time frame can make a world of difference.
Impressive:
Depressing:
