A revolutionary new technology captivates investors with its limitless potential. This excitement leads to a stock market rally. Over time, the situation becomes overheated, causing stock prices to reach absurd levels. Eventually, the market collapses.
This sequence of events may sound familiar. It serves as a cautionary tale for investors who are witnessing similar patterns in today’s market environment. The lessons from the dot-com era remain relevant as history tends to repeat itself in financial markets.
— news from Bloomberg