Mix in 90 time end at the beginning of 21 centuries, most negotiant has not arrived to generate interest to stock market greatly when. Be opposite so them, internet bubble and its are undone not be the case that can draw a lesson from which. But the continuance that lives as investment, we had been experienced enough much business, know everything is the hour that can impart.
For better for worse, every time experiences metropolis church your something, let you become better.
What is Internet bubble
Internet bubble also is called bubble of science and technology, Internet bubble or network bubble, happen at coming 1995 2001.
A few incident brought about foamy to begin. 1989, berlin wall collapses, cold war ends, globalization and free trade be current. This opened the entrance door of commodity freedom flow and market admittance unprecedentedly. Internet is making a of the society main component, help enterprise and individual life. Interest rate also is in extremely low-level. Interest rate drops from the two digit of 90 time 90 time medium-term 4% . All these elements brought up perfect storm.
Investor longs to invest and make money. Entrepreneur people longing opens company of a science and technology to make money. Those companies that record without a large number of histories are eager to undertaking IPO will make money.
As the bitter fleabane of Internet suddenly develops, various companies hold water in succession. What your poineering place needs now is website of a.com only, you had gotten ready made money. These network companies appeared on the market very quickly, great majority still does not have gain. Investor does not want to miss growth potential of future, so they buy a share, push quickly tall share price.
Arrive from 1995 2000, na Sida overcame index of integrated stock market to rise 400% . Nasidake (Nasdaq) is dedicated the market index at the technology. 1999, na Sida overcame an index to rise 85.6% , 500 indexes of standard general Er rose 19.5% .
You may think, return rate is so high, the share price of every company rose. The fact is not such. 1999, because investor usu. in anticipation of or in order to bring about a fall in price rises the share of slower company, turn and invest science and technology, the stock that share price drops the over stock that rise.
People invests more and more money stock. The price rises ceaselessly, cannot see an end, because this people takes out money from inside deposit, take a risk in the market. Some people earned a lot of money, and some people compensate a lot of money.
Today's similar point
The history repeats...
If become you to be read about Internet foamy article when, you think it sounds resemble same today, then you do not have a fault. Today's market and the place that there are a lot of likenesses 20 years ago.
Interest rate is in again extremely low-level. Last year in March, beautiful couplet store reduce interest rate the interval to 0-0.25% . When coming to Qian Cunqi when you now so, you can make the money of lowermost limit only. You are to be in actually " be out of pocket " , because interest rate is led under current inflation, your money is fewerer than before.
Have no other way. In interest rate such low, bond yield also is in extremely low-level circumstance to fall, where can you invest? Stock market charming, because it can provide get one's own back,be. More and more people begin to invest the stock market, because they can invest without other place,grow in order to come true. This kind of addition fund flows to helping the price that prop up.
In network bubble period, the company can undertake publicity collect first before gain. This kind of circumstance is already seldom now saw. But the IPO rate of the enterprise is rapidder related a lot of science and technology. A kind when they borrow housing to appear on the market through SPAC(all the time) will come true.
Although SPAC had before 2020, but they had become popular this year rise. There are more than 100 cases this year, among them the) of business of variety of a rich that the biggest name may be DraftKings(Israel. Other a few companies also appear on the market through traditional IPO, be like Snowflake, Airbnb and DoorDash. All place: that these have a likeness? of of Die of fir of grave of chasm of of of Xian Xie Xi?
The place with another today's likeness is, the benefit in be not all industries to rise from the market this year. In network bubble period, people undersell grows slow company. This year, they sold " travel " company. Almost all this year the thing related to travel appeared to glide.
The United States combines airline (United Airlines) or American airline (the airline share price such as American Airlines) drops. Like Avis and Hertz such car rents company outstanding achievement to glide. 10 thousand a person of extraordinary powers (Marriott) and Hilton (the hotel company such as Hilton) closes down in succession. Still have like dust gram Sen Meifu and BP such Petroleum Company.
This year science and technology rise, FAANG is very fierce.
Be in in, these two period have show driving. 1999, the share price that opens high goes up more than 2000% . This year Nuowawakesi medicine (the sale of Novavax) grew 2500% .
Why to differ somewhat today
Both the place that has a lot of likeness, the overmeasure value nowadays is letting people be anxious for it. But mix now a lot of differ in those days.
Although interest rate is in 90 time are very small, but far not so low now. Bond yield also unlike is so low now. Besides the stock, investor still has other option. Nowadays, the stock is the only option that you acquire healthy redound it seems that.
A lot of companies had appeared on the market this year. But compare with photograph of 90 time later period, the company that appears on the market now is more mature. In network bubble period, a companies of any science and technology that have a website can appear on the market and gain attention. Today, successful need is a bit morer.
Although not be all industries are in,grow, but understandable is, the tourism as a result of a lot of areas is basic backwater not before, the amount of travel company is dropping. Those were not engaged in tourism Wu, financial standing the company with good, rich actual strength is benefited this year. Likelihood and the addition that block and shop on big company net concern partial reason, but overall and character, the stock of most this year company is rising it seems that.
If preamble place is narrated, na Sida overcame an index to rise 1999 85.6% , 500 indexes of standard general Er rose 19.5% . This year up to now, na Sida overcomes an index to rise 42% , 500 indexes of standard general Er rise 14% . From March the word of statistic of the middle ten days of a month goes up many breathtaking. And during these growth also happen in economic depression, leave the United States without the person almost.
Conclusion
You cannot look on indifferently. You can miss all results.
But investment also not so should easy. In 6 months in the past, you can throw money almost an any companies, and still can make money.
The city with 500 current indexes of standard general Er is filled with rate in 37 the left and right sides. There are the Internet bubble that taller than this is acting 2000 end and big decline twice only on the history. This is meant compare with historical price photograph, stock by overmeasure.
Present world and 20 years ago very different, this is not network bubble. But so high appraise cost should be met allow investor somewhat vigilant.
