As the Nasdaq Composite surges, outperforming the Russell 2000 by the largest margin since 1999, a sense of déjà vu from the dot-com bubble emerges. US equities near 70-year highs against global stocks, mirroring the exuberance of the past. While the possibility of another -85% drawdown is deemed unlikely, the striking similarities to the ‘back to normal’ rally hint at a dangerous belief in the continuous inflation of the bubble, just as ominous signs of a potential burst begin to loom.
🇺🇸 Party like it is 1999!
The Nasdaq Composite is outperforming the Russell 2000 by the largest margin since then.
H/t: Rosenberg Research pic.twitter.com/0vqOa9B74q
— Alex Joosten (@joosteninvestor) November 9, 2023
Nasdaq top looking similar the the dot-com bubble!
Of course another -85% drawdown has close to a 0% chance of happening but the similar ‘back to normal’ rally speaks to investors believing the bubble will continue to inflate… just as it is about to pop.#bigtech #nasdaq #qqq pic.twitter.com/HLCZGcuRvH
— Easy Markets (@easyfinmarkets) October 31, 2023
Once the bubble pop it'll be too late to get out.
— SwagBear (@theevilbear666) November 9, 2023
"US equities close to 70-year highs vs global stocks."
– BofA Hartnett pic.twitter.com/08S8zQoPWB
— Daily Chartbook (@dailychartbook) November 8, 2023