Dot com Crash

-

This is one of the terrible market crashes of the history of stock market crashes and god tier effort to reach the peak back again.

I'll explain this in a very good simple terms so that we can actually know what happened. Like a story.

So, previously, for the developing dot com cute blue chip tech companies like Cisco, Intel, Oracle, etc. they had nice boom. Not just these, many other companies had crazy growth back then from 1995 to 2000. Value of equity markets grew up exponentially and literally the stock market rose 5-fold between 1995 to 2000 with technology-dominated NASDAQ index raising from under 1000 to more than 5000. 

Now comes the main part. The crash. 

This crash literally made things much worse till an extent that the crazy increased 5-fold index of NASDAQ has gone to thousands again like before. Talking about figures, from a peak of 5,048.62 on March 10th 2000 to 1,139.90 on Oct 44th, 2002, a 76.81% fall was seen by NASDAQ(that's so sad guys seriously).

I mean, my mind thinks "Shit man, I should've made investment in 2002 for those companies" but yea I was a 3-year old kid back then so I couldn't. 

By the end of 2001, all the cute companies that made profits went bust. I mean, all the dotcom stocks went bust. Oracle and few other companies literally lost more than 80% of their value.

It literally took 15 years for NASDAQ to reach the peak again. It happened on April 24th, 2015.  

Why did this dot-com crash happen? What are the most effected companies? Does other crashes match the intensity of this? 

Well, one of the reasons I understood for this was onset of a recession in Japan in March 2000. This made people and world get scared and kind of triggered them to sell off, and making them shift to more safer and fixed-income instruments like bonds.

The other reason might be the increase in the interest rates or we can say "rising interest rates". Apparently the federal reserve raised the fed funds rate several times over the course of the years 1999 and 2000. As we know, higher interest rates? No thanks. I'd rather move out and go to interest-paying assets like bonds ahaha.


Well, anyways that had ended now, 

To learn more about it, visit the following links:

https://www.thestreet.com/dictionary/d/dot-com-bubble-and-burst

https://www.investopedia.com/terms/d/dotcom-bubble.asp



Comments

Post a Comment

Popular posts from this blog

QHack 2023

-
Image
Known for it's speciality as one of the famous hackathons, QHack is back again with many surprises like every time! Are you someone with the enthusiasm to learn Quantum Computing(any quantum field)? This one's for you.. QHack is an annual Quantum Hackathon conducted in collaboration with many sponsors like IBM, Covalent, IonQ, Xanadu, atom computing, etc and it is one of the most happening events of every year! Like mentioned in the description of the event, we can consider it as an event or expo or hackathon or a scientific conference as well! So, what does this event have? This Quantum party consists of events like streaming sessions, coding challenges, open hackathon, puzzle contest, meme contest and repost raffle. Every event is curated in a unique way so that all participants find it interesting to be a part of it.  The hackathon starts at 13th of February and it goes till 28th of February. There is a schedule designed for each day and it can be accessed in the official we
Read more

Moving to a different country as a master's student

-
Image
Since I turned 18, I always wanted to get out of the house and live independently. Being come from an orthodox family who never sent their daughter out of house(not even to hostel), I understand the struggle of finally being away from family. it's a freedom that comes with a price of not being lazy anymore.  I have begun my master's in Information Technology at Northwestern University, one of the most reputed universities in the world. It is a great news and I was super excited but here comes the thing. Once you reach United States from India(or any country away from home), you get to do things by yourself. NO ONE WILL BE THERE TO HELP YOU LIKE YOUR PARENTS DID.  You enter a new place with new people and new problems. You get to do everything by yourself. From buying what you need to managing your expenses, you will see the difference in everything. First two weeks are living hell since you know none and if you are an introvert finding trouble to talk to people, you're done
Read more

What exactly is done by a Product Manager? What are his responsibilities?

-
Image
Product Manager roles are becoming famous these days. Many CEOs were once product managers and did that do them any profit? Let us go further in reading more about product management. Product Manager role is a role where a person/employee is a manager/charge of a product or a component of a product that is widely used by people at a place or a country. The product manager identifies the problem or needs of a customer and develop or build the product according to their needs. Basically it's like turning a vision into reality. Yeah in my terms he manages really hard to get stuff done. I mean, people have to work hard at the end of the day to get what they want or achieve what they want right? Not just being famous, this is one of the highly paying jobs in the world(Yeeah true I did my research yo). Roles of a Product manager: 1. Understanding the needs of user 2. Being able to represent and make changes in the product for development 3. Designing a vision for the product 4. Aligning
Read more