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What was the “Dot Com” Bubble?

The late 1990’s saw a huge uptick in the number of tech startups, as the age of the Internet took hold and new companies scrambled for a share of the action.

As more and more people began to access the world (wide web) of information, new technology companies became more and more abundant in an effort to tap the commercial potential of having a global customer base. This led to excessive valuations of companies that didn't even yet have earnings, as investors poured money in hoping for the "next big thing."

Eventually, due to a combination of court cases revealing unsound business practices, wild overvaluations, and the drying up of seed money, the market popped the bubble in 2000. Prices fell sharply as the new companies failed and investors lost huge sums of money, and the market did not resume its upward course until 2002.

How do Market “Bubbles” Burst?
When was the Latest Housing Bubble?

Keywords: market performance, risk tolerance, volatility,
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