Let’s take a quick ride on a stock market roller coaster. As you read this, check in with your emotions.
In December 1996, Fed Chair Alan Greenspan warned of “irrational exuberance” in the markets. In plain English, he thought stock prices were way too high.
So, what happened next?
In December 1996, Fed Chair Alan Greenspan warned of “irrational exuberance” in the markets. In plain English, he thought stock prices were way too high.
So, what happened next?
Stocks rose 105% over the next four years.
If you’d sold after his warning, you’d have been pretty annoyed. I would’ve been too.
But suppose you held on.
You would have enjoyed that thrilling climb up – until the stomach-dropping plunge of the dot-com crash. Between March 2000 and October 2002, the Nasdaq fell 77%, the S&P 500 dropped 49%.
Here’s what the ride looked like:
Most investors say they would. Fewer actually do when the coaster goes vertical. There were a lot of investors who sold out “while they still had some money left.”
Over time, stocks recovered. Many investors did not.
Are you still checking-in with your emotions?
On September 24, 2025, Yahoo finance published this article: “Does Fed Chair Powell Think ‘Irrational Exuberance’ Is Back on Wall Street?” (2)
I don’t know about you, but I hate roller coasters. They scramble my brain and make me want to throw up. I can do without this kind of excitement in my portfolio.
There may be more gains ahead—or a reckoning. But if Fed Chairs can’t time it, what makes us think we can?
Instead of chasing the best returns, how about building the build the best portfolio for you?
One that:
If you’re not sure if your portfolio will do this for you, please give us a call!
Stay the course,
Barbara
If you’d sold after his warning, you’d have been pretty annoyed. I would’ve been too.
But suppose you held on.
You would have enjoyed that thrilling climb up – until the stomach-dropping plunge of the dot-com crash. Between March 2000 and October 2002, the Nasdaq fell 77%, the S&P 500 dropped 49%.
Here’s what the ride looked like:
- 2000: Nasdaq −39.28%, S&P 500 −9.03%
- 2001: Nasdaq −21.05%, S&P 500 −11.85%
- 2002: Nasdaq −31.53%, S&P 500 −21.97%
Most investors say they would. Fewer actually do when the coaster goes vertical. There were a lot of investors who sold out “while they still had some money left.”
Over time, stocks recovered. Many investors did not.
Are you still checking-in with your emotions?
On September 24, 2025, Yahoo finance published this article: “Does Fed Chair Powell Think ‘Irrational Exuberance’ Is Back on Wall Street?” (2)
I don’t know about you, but I hate roller coasters. They scramble my brain and make me want to throw up. I can do without this kind of excitement in my portfolio.
There may be more gains ahead—or a reckoning. But if Fed Chairs can’t time it, what makes us think we can?
Instead of chasing the best returns, how about building the build the best portfolio for you?
One that:
- Keeps enough cash for the things you want to do.
- Generates the income you need to live comfortably.
- Leaves the rest to grow – and that’s the part that’s built to handle the ups and downs.
If you’re not sure if your portfolio will do this for you, please give us a call!
Stay the course,
Barbara
October 12, 2025
Sources:
1. https://www.slickcharts.com/sp500/returns / https://www.slickcharts.com/nasdaq100/returns
2. https://finance.yahoo.com/news/does-fed-chair-powell-think-204210060.html
1. https://www.slickcharts.com/sp500/returns / https://www.slickcharts.com/nasdaq100/returns
2. https://finance.yahoo.com/news/does-fed-chair-powell-think-204210060.html
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