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December 29, 2020 | Twenty-One Years Later: Starting 2021 with 2000 Style Return Prospects

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

“After ’99, many tech and growth companies lost 50% to 100%. We’re thinking in 2020, everything happens much faster. So, if it took 12 months for the end to begin, now it’s going to take six months.”  Here is a direct video link.

Another familiar accelerant of price correction cycles: margin debt has exploded again.

Further confirming the stocks-wildly-disconnected-from-economic-reality thesis, it now requires 141 hours of work for the average worker in the US to purchase one share of the S&P 500,  This compares with a prior extreme of 100 hours in 2000, and the long-term average of just under 42 hours per share since 1947, as shown here courtesy of my partner Cory Venable and Bloomberg.

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December 29th, 2020

Posted In: Juggling Dynamite

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