If one were to look back at the first two years (or even 1 year, if you prefer) of W's reign, which investments had the greatest returns within equities? Does anyone have that info readily available?

For the value investors, were there any particular investments during those two years that were particularly notable wrt return?

To what degree can we pare back expected returns because of the impact of productivity enhancements (read: automation)? Again, some may have already looked at this issue abstractly. I wonder if there are any concrete estimates one might use.

Stephanie Harvey writes: 

I did some quick searches (no data mining) and two things to note:

2000 - was the optical fiber bubble

2001 - the fourth quarter skewed things with 9/11

A few fun links for the value investor question 

2000s 10 best and worst performing stocks

Comparing Sector Performance During the Last Two Bear Markets

Ralph Vince comments:

By the second quarter of 2001, things were slowing. By the third, everyone could tell we were entering a recession. The aftermath of 9/11 brought everything to an entire seizure for the quarter, which lingered well through 02.

But the economic decline was noticeable (at least in the manufacturing sector) by the second quarter of 01.

Now, however, by the third quarter of I saw an acceleration in job demand (per me) and corporate profits again rising. 

Scott Brooks writes: 

The markets were trying to recover after the dotcom bubble burst, but 911 knocked it on its butt. The markets were fairly resilient pretty quickly after 911 and trying to recover, then came the Enron/ArthurAnderson debacle (Worldcom, Global Crossing, etc. etc.).

Of the three years in the downturn (2000,2001, and 2002), 2002 was, by far, the worst.

I think people were surprised by the dotcom bubble burst, but not shocked. Any thinking person with an IQ north of 90 inherently knew that the bubble would burst someday.

I think people were shocked by 911, but it also steeled a lot of resolve in the US.

But the Enron, Arthur Anderson, Global Crossing, etc. was a devastating blow to the US psyche as people started to learn that Wall Street was not being honest with them.


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