Soaring IPOs, Mega-Mergers Fuel 1990s Dot-Com Frenzy; Caution Signs Flash as Markets Overheat
• IPOs gaining over 70% on first day of trading in 1999 signaled a bubble soon to burst
• Mergers like AOL & Time Warner for $182B in 2000 reflected irrational exuberance
• Stock indexes doubling within 1-3 years may indicate overvaluation
• Nasdaq up 43% in past year but not yet close to doubling over a 1 year period
• Earnings rising the past 2 quarters offers optimism, though valuations are climbing