S&P 500

2000-2002 Dot-com Bubble Collapse

2000-2002 played host to a sequence of events which included the bursting of the first Dot-Com bubble, the terrorist attacks of September 11th 2001 in America, the corruption of mega-cap titans like Enron, Worldcom, Tyco, HealthSouth and Adelphiaa, the short recession that followed all these events, the war in Afghanistan and the subsequent re-ignition of the property bubble in many Western and European countries. Many people who took money from the Dot-Com era were ploughing that cash into real estate and subprime investments at this point, many such investments were offering substantial, almost unrealistic returns to investors. The S&P fell from a height of 1553 on 24th March 2000 to 768 on 10th October 2002, a drop of 50.5% in nominal terms and 53.7% when adjusted for inflation.