Bear Market 2000 – 2002
On this page, you will find charts illustrating the trends of important indicators during the bear market downturn from 2000 to 2002. Other references to this bear market are “dot-com bubble burst” and “irrational exuberance”.
An era of exuberant speculation in dot-com companies, dot-com startup bankruptcies, and corporate accounting scandals lead to one of the most prolonged bear market declines of the post-WWII era.
Subscribe to our weekly RISXX Market Risk Report
71 market risk ratings
44 investment signals
performance reports
“You guys are doing a great job.”
Tony, Australia
Bear Market 2000 – 2002 – Overview
On 03/24/2000, the broad US stock market index S&P 500 reached a high of 1552.87 index points at the US market close before declining to a low of 768.63 points on 10/10/2002. The S&P 500 index lost 50.50% during this bear market.
In spring 2003, the low was tested once again, and the bear market came to an end.
S&P 500 is a registered trademark of Standard & Poor’s Financial Services LLC.
S&P 500 Index – Bear Market 2000
S&P 500 is a registered trademark of Standard & Poor’s Financial Services LLC.
S&P 500 Index – Implied Volatility – Bear Market 2000
S&P 500 is a registered trademark of Standard & Poor’s Financial Services LLC. CBOE and VIX are registered trademarks of CBOE Exchange Inc.
Some Possible Reasons for the Bear Market 2000 – 2002
- Greed or so-called “Irrational Exuberance” – copyright by Alan Greenspan, who used this expression in the course of his speech “The Challenge of Central Banking in a Democratic Society” at the Annual Dinner and Francis Boyer Lecture of The American Enterprise Institute for Public Policy Research, Washington, D.C. on 5th of December 1996:”But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?“
- Significant deteriorating “market breadth”, such as the advance-decline-line, because of non-confirmation of new all-time highs of stock index
- Rapidly declining dividend yield
- High price/earnings ratio (P/E)
Bear market 2000 – Key Market Indicators
US Treasury Bills
Treasury Bonds
US Treasury Bond Futures
CME and Chicago Mercantile Exchange are registered trademarks of Chicago Mercantile Exchange Inc.
US Dollar
ICE is a registered trademark of Intercontinental Exchange Inc. U.S. Dollar Index is a registered trademark of ICE Futures U.S. Inc.
Price-Earnings-Ratio (P/E Ratio)
S&P 500 is a registered trademark of Standard & Poor’s Financial Services LLC.
Dividend Yield
S&P 500 is a registered trademark of Standard & Poor’s Financial Services LLC.
Market Breadth – Advance-Decline Line
NYSE and NEW YORK STOCK EXCHANGE are registered trademarks of NYSE Group Inc.
Market Breadth – New High and New Lows
NYSE and NEW YORK STOCK EXCHANGE are registered trademarks of NYSE Group Inc.
Gold
Commodities
The New York Board of Trade (NYBOT) is now owned by the Intercontinental Exchange. The Reuters Jefferies/CRB Index Futures contracts were delisted by ICE Futures U.S. on 25th of September 2012.
Crude Oil
New York Mercantile Exchange, NYMEX, CME, and Chicago Mercantile Exchange are registered trademarks of Chicago Mercantile Exchange Inc.
Disclaimer
Sniper Market Timing is providing this website and its information for guidance and information purposes only. The information contained herein has been compiled from sources deemed reliable. It is accurate to the best of our knowledge and belief; however, Sniper Market Timing cannot assure its accuracy, completeness, and validity and be held liable for any errors or omissions. All information contained herein should be independently verified and confirmed. Sniper Market Timing does not accept any liability for any loss or damage howsoever caused in reliance upon such information. Reader agrees to indemnify and hold harmless Sniper Market Timing from and against any damages, costs, and expenses, including any fees, potentially resulting from the application of any of the information provided by Sniper Market Timing. The Sniper timing system has not been applied over a significant period in real trading. Recommendations made in the future may or may not equal or better the Sniper timing system’s performance as simulated by historical backtesting.
The analysis, ratings, and/or recommendations made by Sniper Market Timing, snipermarkettiming.com, and/or any of its suppliers do not provide, imply, or otherwise constitute performance assurance. Past actual or simulated performance is no guarantee of future results. Therefore, it should not be assumed that future results will be positive or will equal past performance, real, indicated, or implied. Sniper Market Timing offers no assurance regarding the accuracy, market predictive powers, suitability, or effectiveness (either expressed or implied) of any of the information provided. This website has been prepared solely for informational purposes. It is not an offer to purchase or sell or solicit any offer to buy or sell any security or instrument or participate in any trading strategy. The trading instruments and the trading signals discussed on this website may be unsuitable for investors depending on their specific objectives and financial position. The trading instruments’ price or value to which this website relates, either directly or indirectly, may fall or rise against investors’ interest. Any market exposure always entails the possibility of substantial loss of equity. Reader agrees to assume all risk resulting from applying any of the information provided by Sniper Market Timing.
Additionally, to usual risks embedded with investing, international trading may involve the risk of capital loss due to fluctuation in currency values, from differences in accounting principles, or economic and/or political instability in foreign countries. Any commercial realization of the information provided by this website without written permission from Sniper Market Timing is strictly forbidden. Trademarks and copyrights mentioned on this website are the ownership of their respective companies. The names of products and services presented are used only in an educational fashion and to the benefit of the trademark and copyright owner, with no intention of infringing on trademarks or copyrights. Sniper Market Timing and/or its principals may purchase or sell any of the securities cited on this website.