‘Making Money’ Manager Charles Payne chat by creating the market to come back.
If you were investing at the end of the 1990s, you will remember the euphoria of the DOT-com boom. Anything about “.com” at the end of its name may raise millions in the capital and see its stock price twice or three times.
Investors believe that the Internet will change everything – which, righteousness, eventually did. But between 2000 and 2002, that dream turned into the night when Nasdaq lost about 80% of its importance, wiped off billions of rand.
Today, by artificial intelligence leads to the topics and investment in investors, many people wonder if we hear one of the dots?
AI feels like a new Internet – conversion technology that promise to grow industries from health care to make money in recreation. (/ Stock)
Matches until late ’90s
There is an unsignificant similarity between two times. At that time, Internet companies are less than the business plan and the website was placed at the stars. Today, AI feels like a new Internet – the promising technology is to grow industries in health care for health care. The account is strong, and the capital is fast entry. Recently, Papantir is a fan you like now, sold with a 522 PE!
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Another similarity is of market concentration. In 1999, Cisco, Intel, Microsystem and AOL Baby Boom’s Boom children. It’s early today, and the so-called “7” – the Apple, Microsoft, the Alphabet, Amazon, Metala, Motimia – Building over 30% of S & P 500.
Putting that vision, is & P 500 should be a variety of amphemies of higher American companies. But as long as a small number of shares drows most of the return, creating real risks when these companies are stumbling. Catatation Market Capitalization of the Top 10 s 500 shares about 40% of the total citizen of S & P 500.
Important Difference
While the Ecoes of the DOT-Com is very loud, the difference is relieved.
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First, prices expanded but almost approximately 1999. At that time, Odvation-to-Realings most Internet shares have not received the income earned at all, making the metric metric metrics.
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Today, S & P 500’s previous S & P 500 rate of P / E Prove Provers of 21. That rising is compared to a long-term average of 15-16, but no DOT-com area. Also, tech bullying are ruling modern-day business are most beneficial business produce great cash flow. The end of the area where we see these dot-com patterns from AI shares. Hit the two characters Ai near stock and it is a food for investors.
Second, companies leading to the seizure are not considered by unprotected business models. Apple, Microsoft and Alphabet and billions of billions of dollars with Fortress Balance sheets and decades profit unchangeable profit. NVIADI – Ai Tradery Crown Jewel – sells real products with an unusual need. Unlike Pets.com, Webvan.com and Etoys (remember them?)
Is ai the new DOT-COM?
There is no doubt that AI feels Frothy. Just as investors at the end of the 1990s believe that all businesses will be converted, many now believe that AI will reset all the economy. Some of these hopes are worth.
The Essex Investment Management Coon Nancy Prial has shown the factors that carry market width on ‘making money.’
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The Internet changed our lives living today. AI has the ability to improve the product, reduce costs and create completely new industries. But short time, markets almost overly the speed of acquisition companies and AI companies begin immediately that many will fail.
This is where the risk is killed: Not AI will change the world, but investors think it will happen. History tells us that the conversion technology usually goes on hypertes of hype. We thought now, people wouldn’t have to write checks but 50 percent of Americans wrote at least one check in the last 12 months. There will be winter, but there will be a lot of lost in the way.
Why is this not 2000
Despite hype, I don’t believe we are looking for a dot-com accident. Here is:
- Power of Leading: The biggest companies in S & P 500 are the equipment made by money. Apple alone does more than $ 100 billion free cash flow per year. That’s very screaming from the past dot-comb.
- Powerful Best Sheets: Corporate America is healthy today. Many leading firms have low debt and capital storage. In 2000, balanced sheets were very weak.
- Controlling and maturity: Financial plan is more prepared. Lessons from DOT-com firms and the 2008 issue is to sea markets with great difficulty.
The investment in investment in Fitz-Geralald Gialz
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Will there be a stiffness? Certainly. Some shares are being conducted by AI are available at perfection and will repair when the truth falls on expectations. But the full-market fall as we saw from 2000 to 2002 impossible.
A better comparisons can be riatroad boom of 1800s. Railroads rail changed the economy, and many companies failed in the way. However, infrastructure has created the growth of US growth over the century. AI can follow the same way – Messy first, but eventually changing the world.
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