Echoes

<div class="finbold"><p class="paragraph">As the famous saying goes, “History never repeats itself, but it does often rhyme,” and recently, the Nasdaq Composite index (NASX) chart has been demonstrating eerily similar movements as around 20 years ago, when the dot-com bubble imploded.</p><div></div><p class="paragraph">Indeed, the NASX chart shared by the data analytics platform <em>Barchart</em> shows that the index’s current chart patterns mimic those from the turn of the century, specifically the two bottoms, followed by a top, another bottom, another top, and a beginning of a decline, as shown in an X post published on October 26.</p><figure class="wp-block-image aligncenter"><img src="https://thebittimes.com/image/getimage/?url=https://lh7-us.googleusercontent.com/6uaVbDqmdx9Rseon66ERH6_4S33veH5WBu58Ltyl0iOr5cYCb7VTnICjaQW9yomJ6balQ7MiEh33lSquwQRhG_AOpuwX_ugo-apHBWpfJcLm1LWgdufouYqDzacj5pOPCU_ibLwAOzqGiih8PS--MOc" alt=""><figcaption class="wp-element-caption"><em>Nasdaq Composite chart since late 1990s. Source: </em><em>Barchart</em></figcaption></figure><p class="paragraph">As the X user <em>Michael Burry Stock Tracker</em>, who keeps track of Michael Burry’s stock portfolio, highlighted when reposting the chart, the comparison of the dot-com bust and today’s stock market was “looking a little spooky,” according to the post shared on October 26.&nbsp;</p><h2 class="wp-block-heading" id="h-what-happened-in-early-2000s">What happened in early 2000s</h2><p class="paragraph">As a reminder, the dot-com <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/bubble.html">bubble</a> was a stock <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/market.html">market</a><a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/bubble.html">bubble</a> fueled by highly speculative <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/investments.html">investments</a> in internet-based businesses during the bull <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/market.html">market</a> of 1995 – 2000 that saw a dramatic growth in the value of equity <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/market.html">market</a>s, particularly the technology-dominated Nasdaq index.</p><div class="not-prose relative overflow-auto scrollbar-hide mb-8 mt-8"><div class="relative w-full flex gap-6 snap-x snap-mandatory overflow-x-auto"><div class="max-w-[300px]"><div class="py-0 first:pt-0 last:pb-0"><div class="flex gap-x-4"><div class="shrink-0 w-24"><img alt="" class=" w-full rounded-md lazy"></div><div> Stocks <h3 class="font-bold leading-6 " id="google-bard-predicts-tesla-stock-price-after-cybertruck-launch">Google Bard predicts Tesla stock price after Cybertruck launch</h3><div class="sm:flex gap-x-3 mt-2"></div></div></div></div></div><div class="max-w-[300px]"><div class="py-0 first:pt-0 last:pb-0"><div class="flex gap-x-4"><div class="shrink-0 w-24"><img alt="" class=" w-full rounded-md lazy"></div><div> Stocks <h3 class="font-bold leading-6 " id="pfizer-stock-crashes-to-52-week-low-heading-for-worst-year-in-decades">Pfizer stock crashes to 52-week low, heading for worst year in decades</h3><div class="sm:flex gap-x-3 mt-2"></div></div></div></div></div><div class="max-w-[300px]"><div class="py-0 first:pt-0 last:pb-0"><div class="flex gap-x-4"><div class="shrink-0 w-24"><img alt="" class=" w-full rounded-md lazy"></div><div> Stocks <h3 class="font-bold leading-6 " id="wall-street-sets-netflix-stock-price-for-the-next-12-months">Wall Street sets Netflix stock price for the next 12 months</h3><div class="sm:flex gap-x-3 mt-2"></div></div></div></div></div><div class="max-w-[300px]"><div class="py-0 first:pt-0 last:pb-0"><div class="flex gap-x-4"><div class="shrink-0 w-24"><img alt="" class=" w-full rounded-md lazy"></div><div> Stocks <h3 class="font-bold leading-6 " id="here-s-why-michael-burry-s-huge-etf-bet-is-at-risk">Here’s why Michael Burry's huge ETF bet is at risk</h3><div class="sm:flex gap-x-3 mt-2"></div></div></div></div></div><div class="max-w-[300px]"><div class="py-0 first:pt-0 last:pb-0"><div class="flex gap-x-4"><div class="shrink-0 w-24"><img alt="" class=" w-full rounded-md lazy"></div><div> Stocks <h3 class="font-bold leading-6 " id="why-is-coca-cola-stock-surging">Why is Coca-Cola stock surging?</h3><div class="sm:flex gap-x-3 mt-2"></div></div></div></div></div></div></div><div class="mb-4 bg-slate-50 rounded-md layout-adjustment"><div id="finbold.com_middle"></div></div><p class="paragraph">However, in the late 2000s, investors realized that many of these companies’ business models were not viable, which led to a two-year-long bear market that saw the Nasdaq index plunge over 75%, the majority of dot-com stocks go bust, and trillions of dollars in investment capital disappear.</p><figure class="wp-block-image aligncenter is-resized"><img src="https://thebittimes.com/image/getimage/?url=https://lh7-us.googleusercontent.com/n0OVncPhHIGPhej1_S2nNmCc3dCx0bNJzrRhSgQBBPOtJ1PsFjP-R_-n-b5p3XCkQxVRsilREJsnxWNgcS9DGQ2-U7OgKdH1j0NUgmCG7_SGWYsy0u_AiUYHdpuGmBHL1EafBsPscWFlgazZ_CuodQA" alt="" width="750" height="520"><figcaption class="wp-element-caption"><em>NASX during dot-com bubble and collapse timeline. Source: </em><em>Global Entrepreneurship Institute</em></figcaption></figure><h2 class="wp-block-heading" id="h-echoes-of-the-past">Echoes of the past</h2><p class="paragraph">What followed was a period of 15 years before the Nasdaq stock index recovered and retrieved its peak. Considering that the same pattern has been unraveling for the past several years, a question arises as to whether another massive stock <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/market.html">market</a> crash could ensue, just like the dot-com <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/tag/bubble.html">bubble</a>.</p><p class="paragraph">Earlier this year, legendary investor Michael Burry, a hedge fund manager known as “The Big Short,” who has built a reputation for making predictions about the financial markets, warned about the state of the banking and financial world at the time, pointing out that they were mirroring the dot-com and housing crashes from 2000 and 2008.</p><p class="paragraph">At the same time, the chief market strategist at <em>InTheMoneyStocks.com,</em> Gareth Soloway, earlier this year compared the dot-com bubble, not with the stock market or banking but instead with today’s cryptocurrency market, arguing that it could go through the same kind of washout that dot-com companies had gone through at the time.</p><p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p><p class="paragraph"></p></div><p>Source: <a rel="noopener noreferrer nofollow" href="https://thebittimes.com/stock-market-chart-echoes-dot-com-bubble-are-your-investments-safe-tbt67845.html">https://thebittimes.com/stock-market-chart-echoes-dot-com-bubble-are-your-investments-safe-tbt67845.html</a></p>

Stock market chart echoes dot-com bubble; Are your investments safe?

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