Why investing can be so frustrating (especially if you ignore the technicals):
Tech investors in 2000 were right about the possibilities of the Internet and mobile computing. But they were dead wrong about which companies would be in the vanguard and how long those advances would take.
And they paid the price.
Returning to 4000 — first crossed in December 1999 and last seen in September 2000 — is a symbolic end to more than a decade of pain. Legions of investors plunged into the tech-stock craze of the late 1990s in search of easy riches and ended up falling victim to the worst crash since the Great Depression.
The Nasdaq fell 78% in 2½ years. Many investors worried it might be a long time before they got their money back. But few could have imagined it would be this long.
“It’s taken 13 years to get back,” says Jack Ablin of BMO Private Bank. “It just shows the magnitude of that bubble we expanded back in 1999 and 2000.”
My emphasis added. It’s not enough to be generally right about the fundamental story. The technicals (i.e. trends of the stocks themselves) cannot be ignored.
Source: Yahoo! Finance
