The 2000 bear market inflicted financial injury upon many investors. The economy of United States plunged into recession and the indexes of the stock exchange nose-dived one by one. The Dow Jones Industrial Average was the last index to give in to the forces of the 2000 bear market.
The article below reveals certain facts about the bear market, of the 2000 financial year.
The 2000 fiscal year bear market is often referred to as a period of “Irrational Exuberance”. According to Standard & Poor ‘s 500 index (on 24th March, 2000), the index went up to as high as 1552.87 points.
The index finally dropped to 768.63 points as of 10th October 2002. Financial planners are of the opinion that investors should think of diversifying their investment portfolios so that the loss incurred by several investors during the 2000 bear market is not repeated again.
A troubled market impacted investment portfolios of many, as was demonstrated in the indexes of the stock exchange. The Dow Jones Industrial Average was perhaps the last to succumb to the beckoning of the 2000 bear market.
Prior to that, the Nasdaq Composite Index, the S&P 500 Index and the Toronto Stock Exchange had already fallen prey to the 2000 bear market furor. The Dow Jones Industrial Average dropped to as low as 9378 points, thereby conforming to the requirements of a bear market.
US economy during the 2000 bear market:
During this period, the economy of United States of America slowed. As a measure, the Federal Reserve decided not to deduct interest rates. A drop in the interest rate was expected but the cut was unexpected.