Let’s compare the charts of the S&P 500 for the Dotcom Era bull market, and today’s bull market:
And let’s compare the charts of the NASDAQ Composite for the Dotcom Era bull market, and the bull market of today:
As we can all clearly see, if we compare the difference between the S&P 500 charts, it seems like we are in a fully inflated bubble that’s ready to burst any moment. However, the variance between the NASDAQ Composite charts indicates we still have some more room to go. Chances are that we still have a little bit more air to catch. But mind you, the bear market that followed the Dotcom Bubble Burst was long and devastating. Tech stocks took more than a decade to fully recover before reaching new highs. Let’s just hope that the next inevitable market downturn is just a relatively quick correction, and not a fully blown bear market.