Down 60% or More on an Investment? Past Stock Market Bubbles Teach Us This

As of March 31, there were 3,739 stocks in the Nasdaq Composite Index. And according to Finviz, around 1,600 of these are down 60% or more from their 52-week highs. Similarly, there are 500 companies in the S&P 500, and as of this writing, a whopping 42 of these supposedly stable stocks are down 50% or more from their 52-week highs.

There are an unusually high number of stocks down 50%, 60%, or more right now. Two such stocks that I own are Pinterest (NYSE: PINS) and Peloton Interactive (NASDAQ: PTON), which are down 80% and 94% from their respective highs.

If you, like me, own stocks that are down substantially, you're likely wondering how long it will take to get back to breakeven. But this is the wrong question to ask. And we can look to dot-com bubble darling Micron Technologies (NASDAQ: MU) to help guide our thinking when deciding what to do with stocks like Peloton and Pinterest in this environment.

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Source Fool.com