Is the market in bubble territory?
Markets are starting to party like it’s 1999. We’re not quite there yet, though. Between October 1999 and March 2000, the Nasdaq almost doubled. That makes today’s markets look tame, but perhaps another blowoff top is around the corner.
That’s especially the case as markets start to front-run the appointment of a new Trump-friendly Federal Reserve Chairman, who will undoubtedly cut rates – potentially a lot – by mid next year.
The parallels
The similarities between today’s markets and 1999 are becoming eerie:
1. Market (over?) exuberance for anything tech. Just ten firms – including Amazon and Nvidia – have accounted for 55% of the rise in the S&P 500 since ChatGPT launched in 2022. Today, Nvidia is tech’s golden child, as…
