With the rise of tech companies and the prominence of tech-related issues such as driverless cars and AI (artificial intelligence), some veteran investors and traders may be wondering, “Are we heading for another dot com bust?”
Well, the answer is somewhere out there and only time can tell, but let us try to find one by going through some of the trends and indicators that we can see now.
First, we shall go through a history lesson.
The Original Dot Com Boom and Bust
The original dot com boom and bust period was generally accepted to be between late 1998 and early 2001. Using the NASDAQ Composite Index as a gauge, from a modest 1500-ish points in August 1998, it reached to slightly above 5,000 points in March 2000, before falling down again to about 1,800 points in March 20011. Back then, anything and everything related to the …