2 Reasons This Crash in Tech Stocks Is Not the Dot-Com Bubble 2.0
Many are calling this recent implosion of technology stocks the second coming of the dot-com crash of the early 2000s. And to be honest, there are legitimate reasons for the comparison.
Margin levels skyrocketed last year in a very similar fashion to what we saw in 1999, and recently, small-cap technology stocks have seen their prices tumble as much as 90%, not unlike two decades ago. If you lived through the internet bubble, there's likely a lot of emotional scar tissue still present that would lead you to believe it's all happening again.
The fear is understandable -- many new technology stocks in the early 2000s never recovered from the market's collapse. But while there are noticeable similarities, I see two really important differences that lead me to believe this crash will not play out the same way it did two decades ago.
Source Fool.com
