This New York Times article
uses the Facebook stock fiasco as an example of the downsides of stock picking. However, it warns against being down on the stock market overall. The theme is that index funds still provide long-term value:
despite some scary periods in 1987 and 2001 and 2008, if you bought all of the stocks in the Wilshire 5000 index 30 years ago and then hung on to them, you would have earned an annualized return of 11.3 percent through the end of this April.
I wonder if Japanese investors were thinking this way 30 years ago. There are probably a lot of disappointed Japanese investors