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Posted on 22 July 2012 | 3,636 views

Dot.com Stock Market Crash of 2000 was Predicted by Barton Biggs

Barton Biggs, the former chief global strategist for Morgan Stanley (Ticker Symbol: MS), who warned three years before the crash in Dot.com companies that stocks were too expensive, died at the age of 79 years old.

Morgan Stanley CEO James Gorman confirmed Biggs’ death in a memo to employees. A bank spokeswoman told The Associated Press that Biggs died after a short illness.

In 1997, Biggs said that stocks in most parts of the world “are currently very expensive.” In January 1999, he warned that a spectacular rally in Internet Stocks would “come to a very bad end.”

The most widely watched measure of technology stocks, the NASDAQ Composite Index, peaked on March 10, 2000, before losing almost 80 percent of its value over the next two and a half years which was known as the Dot.com Stock Market Crash of 2000.

Biggs co-founded one of the first hedge funds, Fairfield Partners, in 1965, Gorman said. Biggs founded Morgan Stanley Investment Management in 1975 and served as its chairman until 2003. He served on Morgan Stanley’s board until 1996.

Gorman said in the memo to employees that Biggs “left an indelible mark on our business, our culture and our shared notion of leadership at Morgan Stanley.”

Biggs graduated from Yale University and served as an officer in the Marine Corps — he was the author of three books.

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