Then sentiment switched from “buy everything”, to “sell everything” almost overnight. In a span of a few weeks in 2000 the Tech sector came crashing down, hard. From the peak in the NASDAQ in the middle of March 2000 to the low in December 2000 the sector lost 50% in a brutal selloff…… So, what can one do if the next few years unfold like the tech bust and boom of 2000? First, from a safety perspective consider reducing Tech exposure to a scale that can be held through a deep drawdown. This might take one out of a year-end boom, but could protect against significant capital loss in the medium term. The risk-reward today is simply not there….
