Recession

The Dot-Com Bust: When a Tech Bubble Crashes -78%


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In this episode, we dive deep into one of the most significant economic events of the late 20th century - the Dot-Com Bubble. From its meteoric rise to its dramatic fall, we explore how the internet revolution transformed the investment landscape and eventually led to an unprecedented market crash. 

Key Topics Covered: 

  • The NASDAQ's incredible 800% rise from 1995-2000 and subsequent 78% crash
  • How modern-day darlings like NVDIA and Microstrategy fared during the Dot-Com bubble 
  • The idea that "this time it was different" 
  • How the early internet era shaped technological optimism and investment behavior
  • The role of the Federal Reserve in attempting to manage the overheating economy
  • Parallels between historical tech booms and today's AI/crypto markets
  • Impact of online trading platforms in democratizing stock market access
  • The Warren Buffett indicator 

  • Notable Statistics:

    • NASDAQ peak: 5,048.62 (March 10, 2000)
    • Duration of economic contraction: March 2000-November 2001
    • Website growth: 1 site in 1991 to over 2.4 million by 1998

    • Modern Parallels:

      • AI and the idea that the economy will become totally different and more resilient because of a new technology
      • MSTR: Microstrategy a key player during the dot-com era and today
      • Crypto: Mania & hype around bitcoin and memecoins
      • Current AI boom and cryptocurrency market growth
      • Tech sector dominance in today's market valuations
      • Retail investor participation through digital platforms
      • ...more
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        RecessionBy Daniel Foch

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