Key insights
- The article discusses the common phrase "this time it's different" in the context of market bubbles, specifically comparing the current market to the 1990s internet bubble. It notes that many high-growth tech companies are currently profitable, unlike their dot-com predecessors, potentially justifying higher valuations. However, the article still carries a slightly bearish tone, questioning whether current speculation could lead to a market correction.
This phrase “this time it’s different” is thrown around a lot for warnings of whistling through the graveyard before the market collapses. There are a lot of comparisons to the 90s internet bubble and there are differences with a lot of the companies that have gone up a lot actually make money and not just plan to based on a new technology. The average PE is up a lot for stocks mostly from a lot of these high tech stocks that at least have an argument that they represent a great company that justifies the price.
My question is, has there been a time before where it really was different? Where we’ve said hey this is a lot of speculation and we’re in a bubble and there wasn’t a huge market crash.