January 25, 2022
With the Nasdaq Composite Indexs entry into correction territory on Wednesdayand its subsequent selloff, comparisons will once again be made to the mother of all tech routs, the 2000 dot-com collapse.
From March 10, 2000, the Nasdaq began retreating from an intraday high of 5132.52, to a low that year of 2288.16, a 55% collapse. (The Nasdaq didnt truly bottom until Sept. 30, 2002, with a close of 1172.06.)
Could things be as bad again？ We are again coming out of a bubble, with stocks seeming vulnerable to a deep, deep correction.
The collapse of Netflix shares on Friday, moreover, has eerie similarities to the go-go days of the dot-com era. Netflix(ticker: NFLX) is a quintessential bubble stock, propped up by huge borrowing—$16 billion in the last decade—with no positive cash flow in eight of the past 10 years.
Adding to worries, along with the rout has been a plunge this year in cryptocurrencies.
Bitcoin, at a recent $35,380.52, is down 25% this year and has fallen to its lowest levels since July.
And yet many experienced investors, say now is the time to go bargain hunting:
“There is no easier way to make money in the market than to buy a great company under pressure due to short-term concerns.”
OneProSpecial Analyst
Buy or sell or copy trade crypto CFDs atwww.OneProglobal.com
The foregoing is a personal opinion only and does not represent any opinion ofOneProGlobal, nor is there any guarantee of reliability, accuracy or originality in the foregoing.
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