Bubbles: From "tronics" to "dot com" (1999)
The article discusses the similarities between the current Internet stock market rally and historical market bubbles. Experts warn that the current enthusiasm among investors may lead to significant financial losses, echoing past events like the tronics boom and the Nifty Fifty. The piece highlights the cyclical nature of market bubbles and the tendency for investors to overlook historical lessons.
- ▪Investors are currently experiencing a stock market bubble fueled by excessive optimism and greed.
- ▪Princeton economics professor Burt Malkiel warns that many investors will likely incur substantial losses.
- ▪Historical examples of market bubbles include the tronics boom of the 1960s and the Nifty Fifty of the 1970s.
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Bubbles: From "tronics" to "dot com"Jan 14, 1999, 04:25pm ESTJun 06, 2013, 02:35pm EDTThis article is more than 10 years old.For day traders armed with Power E*trade accounts and limitless optimism, the Internet is a revolution that has blown away all the old rules about how the stock market works. For more seasoned investors, however, the Internet rally looks suspiciously like a beast theyve seen rear its head time and again in an overripe bull market: a stock market bubble, fed by young, greedy investors for whom a 20% annual return on investments is a mark of defeat. If you read the financial press these days, you may come away with the impression that the Internet bubble is an entirely new phenomenon. But the truly fascinating aspect of the high-flying web stocks isnt their novelty.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Forbes.
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