What Happened

The Dot-Com Bubble: A Post-Mortem

What Happened?

The dot-com bubble was a period of rapid and ultimately unsustainable increases in the valuation of stock. Fueled by rampant speculation and bullish investment, the bubble eventually burst in 2000, leading to a massive sell-off of stocks and a recession.

Contributing Factors

Several factors contributed to the dot-com bubble crash, including:

* Overvaluation: Many dot-coms were dramatically overvalued, with stock prices far exceeding their earnings or assets. * Inadequate Business Models: Many dot-coms lacked sustainable business models and were unable to generate profits. * Speculative Investors: A surge of speculative investors drove up stock prices, often based on hype rather than fundamentals.

Aftermath

The dot-com bubble crash had a significant impact on the global economy, causing a recession and job losses. However, some companies survived the crash and went on to become successful, demonstrating the importance of strong fundamentals and long-term vision.