3 Major Market Valuation Crashes and the Lessons I…
From Financial Modeling Prep: 2024-11-25 03:01:23
- The Dot-Com Bubble (1999-2000): Fueled by internet euphoria, the NASDAQ surged 400% with unprofitable startups. After a 78% drop, lessons on fundamentals and avoiding herd mentality are crucial for today’s tech investors.
- The Housing Bubble (2006-2008): Over-leveraged MBS and subprime lending caused a financial crisis. With the S&P 500 plummeting 50%, monitoring leverage and transparency remains vital in credit-dependent sectors.
- Post-COVID Tech Boom (2020-2021): Stimulus inflated tech valuations, but a 30% decline followed as interest rates rose. Understanding monetary policy impacts and diversifying portfolios are key in today’s AI and clean energy market frenzy.
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