The Epoch Times
FEB 7, 2018
As we enter the 2000 redux phase of stock market bubble and eventual collapse, let’s take a step back and recognize just how similar the landscape has become to what it was like just prior to the crash that cratered the Nasdaq over 80%.
But there is another thing eerily similar to the bubbles of the recent and more distant past, which most people like to ignore: The Fed has initiated a tightening cycle for over two years now.
So let’s remember how this exact scenario worked out in 2000, when so many other macro factors were the same as they are today.
As usual, this did not end with the soft landing the central planners always hope for and never achieve, but with a crash of epic proportions that took the Nasdaq down 80 percent in less than two years. Investors had to wait 15 years for it to see the old high of 5,132.
Why does this matter? Because the market, whether it’s real estate or stocks, is built on the shaky foundations of ever-expanding debt.