Peter Schiff: Markets are totally irrational. Everything is mispriced. Bonds, meme stocks, crypto currencies, etc. all reflect fantasy, not reality…

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TESLA, Other Bubble Stocks Have Deflated Just Like 2000

Is the dot-com bust happening again right under our noses? It might seem an odd claim, but there is a remarkable resemblance between the speculative boom-to-bust of late 1999 and the first half of 2000 and what’s happened over the past nine months in the fashionable areas of clean energy, electric cars, cannabis stocks and SPACs.

If the parallel continues it bodes ill for investors who joined the excess late. The trendy stocks—led by Tesla—are already down a quarter to a third from this year’s highs. But there are reasons to hope that, unlike at the turn of the century, the malaise won’t spread to the rest of the market.

The similarities are in both performance and investor behavior. The late-1999 fear of missing out on internet stocks inflated the Nasdaq Composite 83% from the end of September to its March 2000 top. From September last year to this year’s highs, Invesco’s solar exchange-traded fund jumped 88%, Blackrock’s global clean energy ETF jumped 81%, and Ark’s innovation ETF 70%.

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