The dot-com bubble jumped out 25 years ago. Here’s what market professionals say they have learned.
-
The recent drop in Nasdaq has caused a fear of a sharp rest in technological stocks after years of AI Hype.
-
She compared comparisons to DOT-COM bubbles, which Nasdaq pulled toward 78% when he jumped out in 2000.
-
Market professionals would say that there are important 2000 lessons that investors should think about at the age of 2025.
It’s been 25 years since the DOT-COM falls, and investors are going to care again Technical balloon reaching unsustainable levels.
Nasdaq Composite peaks on March 10, 2000, and the subsequent holidays would last for almost three years, lowering the heavy heavy amounts index for 78% at the low in October 2002.
Rapidly forward 25 years and investors wonder if there is an occurrence of artificial intelligence catapulted markets back to the territory of the bubble.
With Nasdaq in the last month, 13%, Recent stock sale Did any investors wonder if this is the beginning of a much longer and more painful correction after years of Bullish Bujnica. Sounds familiar?
Here’s what investors and strategists have said Business Insider about some hard-learned lessons from the DOT collisions.
Whether you are watching the Dutch Tulipan Bubbles from the 1630s or Japanese 1980 real estate bubbles, all market cycles pass the same stages that investors should be aware of.
Ted Mortonon, General Director and Specialist in Baird Technology, would say -in different stages, they include excessive assessment, complacency, concern/fear, panic and capitulation.
“Until every stage of the cycle is experienced, the bottom cannot happen,” Mortonson said.
Mortonson estimates that the current market cycle is in the concern/fear zone, which suggests that more defects are facing.
“In early April, we will be significantly sold out at the fears of growth slowdown,” Mortonson said, adding that the results of the earnings in the first quarter will be full of failures and the directed guidelines due to the constant uncertainty of the trade policies of President Donald Trump.
According to Giuseppe Sette, President of Reflexivity, investors should closely monitor the stock assessment.
Ratio of forward and earnings ratio S & P 500 He reached about 24x 2000. He recently approached those levels, but quickly retired, compensating around 23x 2021, and then again this year.
“Dot-com bubbles and 2021 show together that 23x-24x forward p/e as much as the market is able to maintain,” Sette told BiH via email. “Every time you see 22.5x p/e, there is a withdrawal nearby.”
