MrCheapo wrote: ↑Sun Dec 05, 2021 11:50 am
jeffyscott wrote: ↑Sun Dec 05, 2021 7:18 am
MrCheapo wrote: ↑Wed Dec 01, 2021 1:41 pm
As a student of history I'd like to understand which time period (and why) we are now in is most like a period from the past.
Some thoughts. Certainly not like 2001 .com Tech crash. The tech companies now have had a material impact on society and mostly justify their high valuations. Perhaps more similar to the 2008/9 sub-prime mortgage crisis because a global event caused a major disruption?
I see it being much more like the 1990s than 2008, wrt stocks. Like then and unlike 2008, it's only a subset of stocks that are, perhaps, overpriced or at least priced for perfection.
International and value stocks are much more reasonably priced, just like the in the late 1990s.
But maybe it's more like the "nifty fifty" era, perhaps with a smaller set of "one decision" stocks?
Interesting observation. Your point is that in 2008 everything was overpriced? Is that right?
Yeah or, in any case, all types of stocks went down at once. In the post-2000 period, small cap value went up until about the middle of 2002 as one example. Depending on how you accessed it, value in general did okay (Vanguard Value index, not so much, but things like DFLVX or deep value managed funds like DODGX). Of course, these same market segments had fallen far behind in the 1990s (just as has happened in the past 5-10 years).
What do you mean by " "one decision" stocks"?
That was just another term for the "nifty fifty", I was reminded of it when I was looking for the time period that the nifty fifty was a thing. I was thinking that is sorta equivalent to FAANG (or whatever the latest acronym is, MAANA
), without the dividends.