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The dot-com bubble popped 25 years ago. Here's what market pros say they learned.
- The recent decline in the Nasdaq has sparked concerns of a potential tech stock unwind similar to the dot-com bubble burst in 2000.
- Market professionals highlight lessons from the 2000 crash that investors should heed in 2025.
- It has been 25 years since the dot-com crash, and worries about a tech bubble resurfacing are on investors' minds.
- The Nasdaq Composite slumped 78% from its peak in 2000 to the low in 2002, lasting almost three years.
- Investors are questioning if the rise of artificial intelligence has led to another market bubble.
- Experts caution about understanding the phases of a market cycle, such as overexuberance, concern, and panic.
- Valuations play a crucial role, with a focus on monitoring stock price-to-earnings ratios like the S&P 500's forward P/E.
- While the current market isn't flooded with profitless firms as in 2000, companies with high valuations are being closely watched.
- Despite past bubbles, the significance of technological advancements like AI is acknowledged by experts.
- Market analyst Belski believes the current market is not in a bubble, emphasizing the differences from the dot-com era behavior.
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