3 Critical Lessons Investors Today Can Learn From the Dotcom Crash
Know why and how the Dotcom crash happened, so you can avoid being unknowingly trapped in a bubble.
As the acclaimed german philosopher, Karl Marx once said,
“History repeats itself, first as tragedy, second as farce.”
The aforementioned quote by Karl Marx reminds me of the “Dotcom” crisis that occurred back in the 1990s. With discussions across several spectra of investors and economists, they lead us to debate whether the stock market today is truly in a “bubble”.
After all, the stock market has rebounded since the crash in March 2020(even hitting an all-time high!) when the global economy is still recovering from the recession.
To evaluate where the stock market currently stands- is it too overvalued? Does the future promise of technological advancements justify the current valuation? Are we possibly in a “bubble”?- in terms of its sustainability, we can delve deep into the “Dotcom” crisis back in the 1990s to gain some insights and lessons to prevent the occurrence of such a devastating phenomenon.
