I’m not saying today’s tech stocks that are getting killed are in for a similar extended winter. But growth investors also shouldn’t assume all of these stocks that are down 50-80% are going to be back at new highs in a hurry.
The Nasdaq Composite was up 41% per year (450% in total) from 1995-1999. From 2017-2021 it was up 25% per year (205% in total). So we didn’t reach the level of insanity from the late-1990s but we were in the parking lot of the ballpark.
It’s also worth noting the Nasdaq Composite is still only 15% off its highs right now.
But within the index there is plenty of carnage:
• Half of the stocks in the index are down 30% or worse
• 40% of stocks are down 40% or worse
• 35% of stocks are down 50% or worse
• 28% of stocks are down 60% or worse
This is a small sample size but here are some of the biggest brand names currently in the midst of a painful drawdown: