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What did we learn from thirty years of tracking stocks?

Stock tracking is a phenomenon that has been happening for over a century. However, the use of technology and data to do so accelerated its application. More retail investors started to track stocks like professionals. This, combined with cheaper transaction fees, resulted in a boom of investing across the general public. Looking back at those thirty years, what did we learn from stocks tracker action?

Before the internet boom started

To understand what the market did, let’s take the S&P 500 index as a reference. We see a relatively slow but gradual rise towards the internet boom in the ’90s. During that decade, lots of internet companies started to emerge. Similar to the crypto market now, these companies claimed to disrupt all markets. Ranging from shops to dating and communications: there were thousands of business ideas.

The IPO boom

What followed was a boom in Initial Public Offerings (IPO) from many companies including Amazon and Yahoo!. Next to that, Venture Capital (VC) was on the rise as well. Everybody wanted to profit from the boom in technology. This resulted in a collapse, which we can compare with the trough of disillusionment of the Gartner hype cycle. The companies simply could not deliver upon their promises. This is the dip that can be observed around 2000 in the graph below.

The period until the financial crisis

After the collapse of the market, known as the Dot-com bubble, few listed Internet companies remained and kept building. We still know about the success stories of those companies today, such as Amazon and Microsoft. If you started investing in Amazon right after the bubble collapsed, you would now enjoy a 20.000% return!

Markets recovered

Naturally, markets started to recover and another event was on the horizon: the financial crisis. Unfortunately, this crisis was completely different. It was not inflated expectations from the public, rather it was the use of very complex financial products. Especially those in the field of mortgages. Lehmans Brothers filed bankruptcy in 2008 and started a new era of recession.

Looking until the present day

Since the deepest point around 2009, we have seen a steady increase across markets. This was even accelerated after the dip due to COVID-19 in 2020. Stock tracking is even more interesting in the present market. With increased innovation in the technology space, pressure on sustainability, and geopolitical tension, more innovations will emerge. The question is: what will be the next big thing? By tracking stocks and cryptocurrencies, you can find out for yourself.

Interested to learn more?

Do you want to learn more about tracking stocks? You can visit the website of Delta.app, a leading provider in the field of stocks tracker technology. The company is offering an all-in-one application that combines traditional investment products (e.g., stocks and bonds) with cryptocurrencies. It allows you to have a holistic view of your portfolio, combined with the transactions you performed. With these insights, you can become a better trader day after day.

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