Two Lessons From the Dot-Com Crash

Travis Hoium
10-19 06:54

Hi Tigers! 🐯

If you didn't invest through the dot-com crash, remember two things:

1️⃣ It can get worse.
2️⃣ It can last a LOT longer than you think.

I'm buying the dip, but I'm not buying stocks just because they've fallen 20%.

A big drop doesn't automatically make a stock cheap. If earnings expectations are still too optimistic and valuations remain stretched, there could be plenty of downside left.

If this really is a bubble bursting, some companies won't survive. Weak balance sheets, cash burn, and dependence on cheap capital can turn a market correction into an existential crisis.

The dot-com crash taught us that even promising technologies can produce terrible investments when you pay too much for them.

The goal isn't to catch the bottom. It's to own businesses that can survive the downturn and still thrive when the market recovers. 🛡️


Markets are always moving - and sometimes, the best move is knowing what works for you.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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