This month Jason Weaver discusses internet versus A.I. bubble, lost decade and the broader market.
Internet versus A.I. Bubble
The current speculative environment increasingly resembles the 1999/2000 Tech Bubble
– Leadership is narrow
– New technology hype
– Investors disregarding diversification
– Investors adding increasing risk exposures
The relative performance between the NASDAQ 100 and the Russell 2000 is as extreme as it was during the Tech Bubble
Lost Decade
The “Lost Decade” refers to the period between 12/31/99 and 12/31/09, when the S&P 500 delivered a negative total return of -0.9% annually
The 1999-2009 period was marked by:
– Collapse of the late 200s Tech bubble
– 9/11 terrorist attacks
– Iraq and Afghanistan wars
– 2008-2009 Great Financial Crisis
Broader Market
“Picking Spots” will be important in 2024 as the economy and market face various potential challenges
Trade wars, China, politics, possible recession, and the long lags of monetary policy
Investors will want to stay disciplined and diversified facing these potential headwinds
