My friends, I am going to walk you down memory lane in 2001 because as I wrote earlier today and over many months:
Bears are a process, one that takes time, and will drive you crazy without context and some distance.
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Bears are a process, one that takes time, and will drive you crazy without context and some distance.
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I am going to start with a CNN Money article from 3/20/2001. By this point in the Bear, the Nasdaq was a year past the apex of the blowoff mania, many dotcoms were bankrupt, and the SPX had been selling off for six months.
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For context, here are the 2000-03 Bear charts with crosshairs denoting Nasdaq (left) and SPX (right) on the day of the article. Note that despite the decline and incredibly negative sentiment, Nasdaq still had 18 MONTHS and -50% to go until it bottomed.
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And here are shots of the article - note the sentiment…red markings mine…
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Now fast forward two weeks — TWO WEEKS. Read this CNN Money article from 4/5/2001, try to absorb how we went from the article above on 3/20/2001….to this… and then subsequently fell another 50%. Again red markings are mine.
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Another feature I vividly remember from 2001? That companies shares would be down 50-90% from the top, a company would report, the stock would bounce after hours on Island ECN by like +15%, and the next day would close -10%.
Does this sound familiar? We’ll see.
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Does this sound familiar? We’ll see.
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