The Last Decade in the Financial Markets Recapped
January 5, 2010 by Jonathan Bridges
Filed under Forex Broker
What a tumultuous decade it’s been in the financial markets. We’ve seen peaks and valleys like never before, and it makes you wonder what lies ahead.
Just ten years ago, things were better than they had ever been in the stock market. Just about everything was at an all time high, and things showed no signs of slowing down. People were buying things blindly, despite the fact that P/E ratios were significantly higher than they had ever been.
It seemed like everyone was making a fortune in the stock market. Even taxi drivers were talking about their latest buys, and the mania had gone mainstream like it never had before. People were making more money in a few months’ time than they’d typically make over a matter of years.
Those who sold at the top are extremely fortunate, because few people saw the major correction coming. Everything tanked during the second half of the year 2000 and fortunes were lost just as quickly as they were made.
To think that the indexes were as high as they were seems ludicrous in hindsight. Within the span of a few months, the markets had corrected by over 20%. Late 2001 was even worse, as the events of September 11th brought about new financial worries.
The roller coaster ride continued during the years that followed, as the DJIA broke new ground and set a high mark just five years later. It seemed as if the good times were back, though not as dramatically as the first time around.
At the same time, oil prices hit all-time highs, and things like forex trading became extremely popular. The mania was back and everyone wanted to be a part of it.
As you well know, the end of the decade ended on a poor note, as we’ve been hit with one of the biggest bear markets in history. On the bright side, things look to be slowly improving and we could very well be on our way back up the roller coaster.
If you’re interested in Forex trading, read this author’s article about the no loss robot ripoff concerns.
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I am fairly positive we will be back to the good old days, history says so.
Till then,
Jean