Plenty of analysts are making the case that the past year’s U.S. stock market gains, led by technology and internet stocks, could set the stage for a repeat of the turn-of-the-century bust of the dot-com bubble — but there’s one very important missing ingredient, a prominent Wall Street researcher noted Tuesday.
The tech-heavy Nasdaq Composite COMP, -0.38% soared 86% in 1999, ending the year at 4,069.30, capping a run that saw it rise from 373.84 at the end of 1990. The index pushed higher in early 2000, peaking out above 5,000 in March, but ended the year down 39%, tumbling another 21% in 2001 and nearly 32% in 2002.
“The Nasdaq is up 44% [year-to-date] and 94% over the last wo years. In 1999 it rose by 86%, so smash 2019–2020 together and you get a 2000-style setup,” he said.
Watch Dogecoin it’s the new Facebook up 70% last night
Eventually the rates will go up. Then we’ll see what happens.
They ain't dropping em either
Another difference - at least in the tech bubble the economy at the time was strong. We’re currently in a stock bubble with a weak economy. The FED isn’t propping up the economy, it’s widening the divide between the markets and the economy, and it will end in a big correction.
The women at a local bakery were talking stocks this past weekend. The reckoning is nigh.
Markets will force interest rates up. But we still have some time before that. It’ll already be too late when that happens. It’s probably too late now to reverse woes that are coming.
Don't fight the fed
Nor will they. If Yellen is in office... oh boy, she is more dovish than Powell. They have already said they will keep the interest rate the same until 2023. I doubt they will boost interest rates when the recovery starts of what is left of the economy happens in Q3/Q4 of 2021
It's printing money like there's no tomorrow. Has there ever been a time you just print money and it doesn't lose its value?
😂
wow
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