Making Money in Technology
After the Bubble, page 11
The Party Was Great, What a Hangover, continued
By way of comparison, consider the two indices shown in Figure 1. The Dow Jones Industrial Average
in the 1929 bubble is compared with the NASDAQ Composite in the recent bubble. Roughly speaking, they
are of the same order of magnitude.
Despite ups and downs, the Dow Jones did not find its true bottom until 1933. It did not regain its
former heights until the 1940s, more than twelve years later.
Figure 1: DJIA 1929 bubble compared to NASDAQ bubble. In the chart, the DJIA has fallen
more proportionately than the NASDAQ—but where the NASDAQ will bottom remains to be seen.
Continued next page
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