CrashesDot-com Bust

Dot-com Bubble Burst

March 2000 – October 2002

Duration: 31 months

S&P 500 DRAWDOWN

49%

peak to trough

What Happened

TRIGGER

Collapse of speculative internet stock valuations, 9/11 attacks accelerated decline

The bursting of the dot-com bubble wiped out $5 trillion in market value. After years of speculative frenzy in internet stocks, the Nasdaq peaked in March 2000 and ultimately fell 78% by October 2002. The S&P 500 lost 49%. The 9/11 terrorist attacks in September 2001 deepened the recession and extended the bear market. Many high-profile internet companies went bankrupt or lost over 90% of their value.

Key Facts

  • 01Nasdaq Composite fell 78% from its March 2000 peak to October 2002 trough
  • 02S&P 500 fell 49% from peak to trough over 31 months
  • 03$5 trillion in market capitalization destroyed during the bust
  • 04Pets.com, Webvan, and hundreds of dot-com companies went bankrupt
  • 05Nasdaq did not recover its March 2000 high until April 2015 — 15 years

Worst Performers

top 5 biggest losers
BKNGBooking Holdings Inc.
-97%
AMZNAmazon.com Inc.
-93%
SFTBYSoftBank Group
-92%
NVDANVIDIA Corp.
-88%
QCOMQualcomm Inc.
-88%

Best Performers

top 5 most resilient
MOAltria Group
+20%
NOCNorthrop Grumman
+18%
CVXChevron Corp.
+16%
GILDGilead Sciences Inc.
+16%
MNSTMonster Beverage Corp.
+15%

Sector Breakdown

HARDEST HIT SECTORS

Technology
Communication
Consumer Discretionary

MOST RESILIENT SECTORS

Energy
Consumer Staples
Utilities
Materials

Recovery Timeline

7 years for S&P 500 to recover (October 2007)

Time from trough to prior all-time high

PORTFOLIO STRESS TEST

How would YOUR portfolio have performed?

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Historical data is educational only. Not financial advice. Past crisis returns do not predict future performance.