Wall Street's Lost Decade

As we enter the second decade of the 21stboost their incomes, especially during the period when
Century, Wall Street is in an upbeat mood since theinterest rates on the dollar were lower, than inflation.
financial upheaval experienced in late 2008. BringingThey lost millions investing in Wall Streets current
good news to investors and Governments aroundbiggest losers General Electric, Du Pont and a global
the World, but the bad news is that the first decadesoft drinks giant.
of the 21st Century a decade were stocks had anSome people are smiling at the end of this turbulent
average of a minus 10% return.decade, the financial crisis of 2008, has stabilized, as
Much has happened since the start of the newreal fears of the collapse of the Global financial
millennium, and the heady first years of a creditsystem have subsided.
boom, that somehow went bust in late 2008. AndThe biggest winners of the decade have been United
Wall Street has illustrated one illusion that investing inTechnologies group, where if you invested 100 U$
stocks during this period was good business.Dollars back in 2000, now have a return of over 250
By the close of 2009, an estimated average of 10%US$.
has been lost on existing stocks traded by WallBut the losers have been more than the winners, and
Street. An investor who bought 100 US Dollars ofthe biggest losers being once the pillars of stability,
stocks in 2000, today would have 90 US$, worth ofBanks. Once considered safe, now like Citigroup
stocks today. Counting for ten years of inflation, thisvalued once at a high at 55 US Dollars a stock, today
spells bad news for investors.a C Stock valued at 3.40 US Dollars- a symbol of plain
These figures do not include Enron, General Motors,financial bad management.
AIG and Citigroup which ruined many investors, whoThe next decade could remake Wall Street, as
held their stocks, and this tells a very different storyinvestors looking at their financial balance sheets for
from the upbeat mood shown on Wall Street at thethe decade, simply look elsewhere for higher returns.
moment.And this could become the era of private venture
Many people who in fact invested in Wall Street,capital, and investing in emerging markets like Brazil.
were ordinary people, who were looking for ways to