NASDAQ 800?

In November of 2000 when the NASDAQ was trading at 3000 Iodine wrote in this column that the NASDAQ Index would fall to 1500 and I got tons of heat energy for saying it. Microsoft had fallen from $129 to $60 per share. You cognize where they are today.

The talking caputs on CNBC-TV and many of the radiocommunication stock experts are convinced we are headed back up as soon as this small “correction” is over – and they could be right, but I look to retrieve their former anticipations just before the major stock indexes went over the edge of Financial Niagara Waterfall Falls. Can it go on again since the market have fallen so far?

For a twelvemonth the DOW have been creeping higher. The NASDAQ have gained back about 40%, but delight retrieve the NASDAQ Index is not composed of the same pillory as it was 3 old age ago and neither is the DOW. Many companies went bankrupt and others have got got been delisted because they make not ran into the criteria to stay on the board.

Too many investors have not done their homework. Most of them only cognize the great bull market of 1982 to 2000. The same travels for brokers. Almost none have got ever seen a bear market. I name the common monetary fund managers ‘children’ because most of them were in nappies during the last bear of l972-74 and they price reduction the sudden interruption of 1987 as an aberration. What it amounts to is they have got no thought of what to make when the brownish material hits the fan.

It is a shame that brokers are not taught the rudiments of how to protect customers’ money and same travels for common monetary fund managers. Scores of common finances went out of business during the last interruption and others were absorbed by their large blood brothers in large monetary fund families.

The market rarely crashes as it did in 1987 and usually gnaws away as it did in 1972-74. Current investors have got never been told about secular bull and secular bear markets that last about 16 to 18 old age in each direction. During those down or at best crabwise time periods investors are happy to interrupt even. This is a historical fact that you can check back for a hundred years.

If we are in this 16 old age down that started in 2000 make you have got a program as to what to make to protect your financial well being? Most people don’t and they decline to accept the thought that anything like another loss of 80% tin occur. Brokers don’t have got a plan. Fund managers don’t have got a plan. Bash you have got a plan? If you don’t it is clip to begin thought how you can protect what you have got now. The most of import thing about any investing is not to lose money.

The market today have the possible for another 2000 break. Now is the clip to protect your investments. Get your pillory and common finances out and if you have got got any that have lost more than than 10 or even 20% from their highest terms it would be wise to sell them and stay in cash. NASDAQ 800 may not be far away.