Are We In Another Dot Com Bubble?
Group chats.
They are the bane of my existence.
For me personally, I can never find the microscopic sliver of conversation that actually pertains to me — though I fully compensate by being that annoying participant constantly asking, “Can someone resend that?” (It’s a core personality trait at this point; I’ve embraced it.)
But the more annoying group chats are guys’ group chats. You know the ones:
the chats that should be full of fantasy-football drama, golf swing videos, and whatever else men bond over…but instead are overflowing with stock tips and “analysis” pulled straight from TikTok and thin air.
And guess who ends up dealing with the aftermath of these digital echo chambers?
ME! And of course, Chris.
I was walking Rania when I got a frantic call from a client — a client who has never once asked a single stock-specific question — and suddenly, they want to sell their ENTIRE portfolio and put it into one single stock. (Hypothetically… maybe one that makes chips? And no, not Ruffles. Think: Nvidia.) That’s when I know it’s time for a gentle, loving chat about concentration risk…or frankly, about their questionable choice of group-chat participation.
The last time I saw the words “concentration risk” with this much urgency was in university, studying the tech bubble of 2000. At that time, I was fresh out of high school, wearing drug store makeup, navigating life, and trying not to flunk microeconomics. (Yes, I just aged myself. I’m fine with it.) But what’s hilarious — or terrifying, depending on the day — is that investor behaviour hasn’t changed that much. Every few years, the stock market behaves like a teenager with a crush: obsessive, dramatic, overly confident, and utterly convinced that this time it’s “real love.”
And right on cue, here come the whispers:
“Is this the Dot-Com Bubble 2.0?”
Well… the answer is complicated.
There are similarities worth noting — but also major differences that today’s investors should actually understand before letting their group chat talk them into reallocating their retirement savings.
- Déjà Vu: A New Technology Everyone Thinks Will Change Everything
In 1999, the internet was THE shiny new toy. Companies with no revenue were being valued higher than actual functioning businesses — simply because someone slapped “.com” at the end of their name. Pets.com literally had a sock puppet and vibes.
Fast-forward to today:
AI is the new cool kid. Every company is suddenly an “AI company,” even if their main business is selling paper towels.
Listen, AI will change the world… but maybe let’s not give every startup a valuation the size of a small country just yet.
- Valuations Higher Than My Standards
The dot-com era gave us historical levels of market delusion. The Nasdaq was trading at valuation multiples that make Starbucks drink prices look reasonable. Today is…not that different.
We’ve got:
- Earnings expectations that assume companies will perform miracles.
- A handful of tech giants holding up the entire market like an overworked Sherpa.
- And, investors who swear “this time is TOTALLY different” (spoiler: it rarely is).
Yes, valuations are high. Yes, that raises risk. No, it’s not automatically doom.
- FOMO: As Powerful as Ever
During the dot-com boom, investors were piling into tech stocks with the same enthusiasm people now reserve for Taylor Swift tickets.
Today?
- Retail investors want in on AI, regardless of whether they can understand the underlying technology or not (guilty as charged).
- Every headline screams “Revolution!”
- Money is sloshing around like we’re all allergic to cash.
If something has “AI” in its name, someone wants to buy it — whether that thing does AI or not. Classic bubble energy.
- Market Concentration: The Beyoncé Problem
In 1999, the market depended heavily on a few tech giants. Today, we have the modern equivalent: NVIDIA, Microsoft, Apple, Amazon, Meta, Alphabet.
They’re basically the Beyoncé of the stock market. Everyone else is a backup dancer. When they move, the whole index moves.
Narrow market leadership = spicy volatility later
So, Are We in a Bubble or Nah?
Here’s where things get interesting.
Unlike the dot-com era:
- Today’s mega-cap tech companies are actually profitable (imagine that!).
- AI is already being used in real life — not just promised in pitch decks.
- Central banks aren’t exactly handing out cheap money like coupons at Costco.
- A correction now wouldn’t automatically implode the entire global economy.
So yes, there are bubble-ish vibes, but no, this is not 1999 on repeat.
What Smart Investors Should Actually Do
- Expect drama.
Tech-led markets = mood swings. Prepare emotionally.
- Don’t put all your hopes and dreams into six stocks.
Diversify like your future depends on it (spoiler: it does).
- Don’t chase hype.
If a company has zero profits but a great AI marketing video… it’s a no.
- Stick to long-term fundamentals.
Actual cash flow > buzzwords.
Final Word: History Doesn’t Repeat, But It Does Love to Rhyme
Is this the dot-com bubble 2.0?
Sort of — but way more mature, like the glow-up version.
We’re in a world where real innovation is happening, mixed with a dash of delusion and a sprinkle of FOMO. Call it the “artisan, small-batch, sustainably sourced” version of the dot-com bubble. Stay invested, stay diversified, and stay focused on your long-term plan, while everyone else is busy chasing whatever tech acronym is trending this week. As always, to a good financial future!
