There may appear to be some superficial parallels between the dotcom bubble and the present time – as today's tech-driven markets continuously post record highs.
However, the facts refute these concerns. Firstly, while the NASDAQ index doubled in value between 1999 and early 2000, this was achieved without any specific fundamental or financial news to support such a rise. Polar Capital: How to avoid value traps in the technology sector By contrast, markets have risen far more gradually in this cycle, with support from underlying increases in earnings. Secondly, during the dotcom bubble, most stockmarket darlings had little or no profits, or cash flow. Even asking about such things was a sign you did not 'get it'. By comparison, Amazon pr...
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