Many stocks were still overvalued after the dotcom burst (2002, 2003). Investors were still in denial. Also lowered interest rates didn't helped, in fact they exacerbated the bubble, by spreading into housing.
Ditto. In spite of the indices which made new highs in 2007/8, this all could still be part of the big bear market which started in 2000.
It IS a bear market. Nominally we did well until 2007, but it was fool's gold... Check out the Dow vs Gold...