That’s John Duffy, founder and CEO of Trending Stocks, about why he thinks the stock market could be in for a long, early 2000s-style unwind akin to what happened in the wake of the dot-com bust.
Duffy, who launched his investing platform this spring, pointed to similarities between this year’s Nasdaq-led rout in stocks and the implosion that followed the run-up of internet and technology stocks in the mid-1990s. This year’s selloff has been attributed largely to the Federal Reserve’s reversal of easy-money policies to tackle inflation near a 40-year high, but also to concerns that it could go too far and throw the economy into a recession.
The Fed now has begun to pencil in a higher fed-funds rate of 4.5%-4.75% in 2023 to reach its goals. The central bank’s benchmark rate hit about 6.5% in 2000 before it was slash to about 1% in 2003 to help juice the economy.
But this time it’s an everything bubble