Investing 2000 - 2006

What can we learn from Investing 2000 - 2006? The table below shows the performance of a small cap stock indes and a large cap stock index during the 7 year period of 2000 - 2006 as found using internet sources. This period had the tech bust, Soldiers in Iraq and Afghanistan, relatively normal inflation and interests rates. Did anyone make money during this period? What investment did the best?

If $1,000 was invested on January 1, 2000 here is how the numbers came out:
Small Cap Stocks = $1,546
Large Cap Stocks = $966

So far this decade Large Cap Stocks has the worst performance. Below is a table of the value of the $1,000 investment at the end of each year.

Year /Small Stocks /Large Stocks
2000 /958 /899
2001 /967/782
2002 /758 /599
2003 /1,102/758
2004 /1,291 /826
2005 /1,330 /850
2006 /1,546 /966

It will be interesting to see how these investments perform for the rest of the decade. The past suggests that large stocks will rise above the $1,000 value by the end of 2009. It is not possible to predict the future value of an investment and diversification can smooth out some risk.