Focus expected to be on the "dot plot" for any clues to number, timing of any cuts this yearThe booming prices of artificial intelligence stocks have some obvious parallels with the dot-com bubble that inflated the stock market to outrageous highs in 1999 and 2000. Parallels that make some investors nervous today.But as someone for whom the dot-com bubble was current events rather than history, I can tell you that today’s market isn’t remotely like the dot-com bubble market was.
Pets.com, the leading online pet retailer, announced Nov. 7, 2000, that it was closing down and laying off more than 250 of its 320 employees after being unable to find a purchaser or a financial backer for the company. One of the most bubbly events took place on Jan. 10, 2000. That’s when Gerald Levin had Time Warner, the media and entertainment company that he was running, do the dumbest deal in history: selling itself to America Online in return for AOL stock, which was a dot-com megabubble.
I don’t think so. Among the reasons is that even though the Seven were incredibly hot, the other S&P companies — let’s call them the Non-Magnificent 493 — had a total return of 9.9%, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. That’s about the average return the US market has shown over the long term.
But what I am telling you is that there’s a big difference between a high-priced market like today’s and an insanely priced market like the Nasdaq was in the dot-com bubble days.
Source: News Formal (newsformal.com)
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