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There is a growing concern amongst analysts, IT experts, computer nerds, that we might see another dot com bust, not unlike the one we saw in 2000, 20 years ago. So, for the unfamiliar, between I’d say 1995 and 2000, the Nasdaq index rose five fold, fueled by an abundance of venture capital and rapid investment in internet based businesses.
And then, in 2000, it all went bust. In the space of just six months, the Nasdaq dropped by close to 80% in value. It would take 15 years for the Nasdaq to fully recover to it its pre-bubble peak.
I think the idea of a Dot Com Bubble 2.0 is an interesting one, particularly in 2020 when we’ve seen just about every other black swan event come to life. In today’s episode, I’m going to explore whether a second iteration of what happened 20 years ago will come to life, and I look at what I think are the pre-emptive, canary in a coal mine, indicators we should be looking out for.
Soundtrack (sourced from www.freemusicarchive.org) Alan Spiljak – Clouds Alan Spiljak – Forgotten Alan Spiljak – Light blue Alan Spiljak – Empty days Alan Spiljak – Stars above Alan Spiljak – Not the end Alan Spiljak – Sun Alan Spiljak – Flying away Alan Spiljak – Time Alan Spiljak – Fantasy in my mind
Bibliography https://www.moneycrashers.com/dot-com-bubble-burst/ https://www.newsweek.com/dotcom-bubble-crash-20-anniversary-technology-companies-ever-happen-again-1491385 https://en.wikipedia.org/wiki/Dot-com_bubble https://www.thebalance.com/can-the-stock-market-crash-again-3141410 |