The dot-com bubble burst in March 2000, despite being called a bubble for quite some time. Indeed, the legend Tiger Management lost a lot shorting this intern bubble and handed money back to LPs in 2000.
What happened? What defining elements mark the peak?
Here are the three important events back then:
1/ March 20, 2000 – Barron’s Burning Up article
2/ March 21, 2000, Fed hiked another 25bp to 6%; hiked to 6.5% in May 2000
3/ Apr 3, 2000, “Conclusions of Law” released; Judge Jackson ruled Microsoft violated the Sherman Antitrust Act (Sections 1 & 2)
Where are we now?
For (1), actually there are many more warning before bubble burst, through 1998-1999. So if people say the FT illustration of $1tn OpenAI deal and The Information article of Oracle losing money on Nvidia chips will lead to the bubble burst, I don’t think so.
Fed – we are still in rate cutting cycle.
Gov regulations – not seeing any real destructive rules.
Party is still on.
Stay stunned.