The Dot-Com Bubble Peaked 25 Years Ago. Are Investors Repeating the Same Mistakes?

Apr 1, 2025

It was a period of unfettered optimism. Nearly everyone thought the sky was the limit, it was a new era, valuations didn’t matter. The only thing that mattered was how

much you put into it, because it was going to continue to climb. Recently, greed was at extreme levels.

 

Former Fed Chairman Alan Greenspan had warned about “irrational exuberance” in the stock market as early as 1996.

Investors ignored this warning. Instead, they increasingly fixated on the promise of the new technology. The current technology promise is AI.

 

The dot-com era was known for high valuations. Recently, the markets were at record valuations.

 

The markets peaked in early 2000. The ensuing bear market lasted more than 2 1/2 years. 

 

The S&P 500 dropped 45%. The S&P 500 finally returned to the same levels in May 2007. 

 

The Nasdaq-100 crashed 80%. The Nasdaq-100 took more than 15 years to return to its dot-com-era peak.

 

The 2000's became known as the "lost decade".

 

The Trump administration is changing decades of tariff policy. The transition will be volatile. If the current administration is successful, the long-term benefit for the US

 will be tremendous for decades.

 

I believe we are in for a chaotic year and a bumpy economic ride this year. It would be wise to protect your assets. Diversify. Reduce your risk. Reduce your tax liability. Increase returns safely. Increase liquidity to take advantage of future opportunities.

 

This is the "Golden Era" of fixed assets. The best rates in 40+ years! Insured with guarantees.

 

   - Your Personal Bank policies are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years!

 

   - Fixed Index Annuities have the best upside potential in 40+ years with no downside market risk. The principle is guaranteed. Some offer signing bonuses up to 16% with strong upside potential.

 

   - Guaranteed Lifetime Income is the highest in 40+ years. Some products offer up to 30% signing bonus. Other products offer up to 10% increased guaranteed lifetime income each year you defer.