Warren Buffett Warned About the Dot-Com Bubble. Now, the Stock Market Is Flashing the Same Warning Signal.
Here's how investors should prepare for potential volatility.
Overview
After months of volatility and stagnating performance, the S&P 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^DJI) both reached new record highs this week. While the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) is still working through its recent pullback, it's surged by nearly 4% in the last five days alone, as of this writing.
However, all of this growth over the past few years has raised fresh concerns around valuations. Tech companies are spending massive amounts to build out data centers, with AI spending expected to top $5 trillion by 2030, according to analysis from McKinsey & Company.
Details
Some investors are drawing parallels to the dot-com bear market of the early 2000s, when hundreds of internet companies ballooned in value only to crash hard when the bubble popped.
Source
Originally published at www.fool.com.