From its peak of 5 048.62 in March 2000, the Nasdaq Index fell over 76% to bottom at 1 139.90 in October 2002. A number of companies that had listed during the internet boom went out of business. Most famously, Pets.com shut down in November 2000, just nine months after its initial public offering (IPO).
“The stock market does this occasionally,” says Murphy. “It did it in 2007 with highly indebted companies, in 2010 with Bric [Brazil, Russia, India and China] companies, and it may or may not be doing it now. Every now and again the market does something stupid and all you have to do is be able to stand back and let it pass you by, and just do the average thing. That over time will build into a much better track record than trying to be super-clever.”
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