Signs the Market May Move Downward Soon: Parallels with Dotcom Bust of 2000

by Builder

Almost one week ago, the Nasdaq 100 index started increasing and gained almost 2%, setting a new record high. Then, on that same day, it lost 2%…plus a little extra. This weird and unexpected situation has only happened one other time: March 7, 2000, the date the dot-com bubble reached its peak.

The Wilshire 5000 to GDP ratio also allows us to estimate the total market cap. This ratio hit a historic high – 155% – right before the stock market crash in March 2020.

IMO, this is more likely after Labor Day when traditionally volumes are higher.

 

 

 

Interesting tidbit:

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US Printed More Money in One Month Than in Two Centuries

In a letter to investors released on July 29, Pantera Capital CEO Dan Morehead noted that the United States has printed a shocking amount of money to combat the pandemic-induced financial crisis.

“The United States printed more money in June than in the first two centuries after its founding,” Morehead wrote. “Last month the U.S. budget deficit — $864 billion — was larger than the total debt incurred from 1776 through the end of 1979.”

…“With that first trillion [USD printed] we defeated British imperialists, bought Alaska and the Louisiana Purchase, defeated fascism, ended the Great Depression, built the Interstate Highway System, and went to the Moon.”

 

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