Back in the late 1990s, Americans were told the internet was the future, and they were right.
The internet really did change the world forever.
But Wall Street took a legitimate technological revolution and turned it into one of the greatest speculative bubbles in financial history. Companies with no profits, no viable business model, and sometimes barely any revenue were suddenly worth billions.Pets.combecame famous for losing money selling dog food online.Webvanburned through more than $1 billion trying to revolutionize grocery delivery before collapsing.eToysskyrocketed despite never building a sustainable business.
None of it mattered because investors were told one thing over and over again: Get in now or be left behind forever.
TheNASDAQ surged nearly 400%+between 1995 and March 2000 as Americans poured retirement savings into tech stocks they barely understood. Analysts insisted the old rules no longer applied because the internet was “changing everything.”
And again, they weren’t entirely wrong. The internet did change everything.
But the profits investors were pricing into those companies were built almost entirely on speculation rather than sustainable business models.
Then reality hit. After peaking at roughly5,048 in March 2000, the Nasdaq collapsed to around 1,140 by October 2002, wiping out almost 80% of its value and trillions in wealth.
Retirement accounts were crushed. Many of the hottest companies of the era disappeared completely.
And now, it feels like history is repeating itself all over again,only this time with artificial intelligence.
Source: The Vigilant Fox
