Posted 3/19/2024, 5:59:44 PM
Today's Stock Market Not as Frothy as 1990s Dot-Com Bubble
- Dot-com bubble was driven by individual stock speculation, unlike today's market which is dominated by broad index funds
- During dot-com bubble, stocks were insanely overvalued compared to more expensive but not outright bubble valuations today
- Handful of tech stocks drove returns last year but S&P 500 overall still delivered reasonable 9.9% return outside those stocks
- Even with recent decline, market is still up 7.28% this year - extrapolating to nearly 35% annualized
- While market is high-priced, not foreseeing an 80% Nasdaq-like dot-com bubble collapse over next few years