Take a note of this statistic – Performance from the 3/24/2000 Dot Com Bubble peak through the end of 2000:
Nasdaq 100: -50.1%
S&P 500 Equal Weight: +9.6%
While we don’t think we are currently in the same environment as we were during the internet bubble, the lack of diversification is likely going to lead to a whole lot of pain for investors and traders alike.