Quote:
Originally Posted by Looch City
Wouldn't the number of internet users now vs 1999 have a big impact though?
The access to information, instant word of mouth, social media. I don't think you can directly compare this to 1999.
|
Obviously there are some differences no two things are ever completely the same.
But the premise is identical: new technology is inviting retail investors into the marketplace, who are driving up the prices of the stocks that interest them. And the new valuations of those stocks are completely sustainable because these new investors just won't sell.
It wasn't true then, and it isn't true now.
BTW, retail investors greatly overestimate their impact on markets, generally. They account for approximately 1/4 of the market. Even a mass influx doesn't change the dynamic all that much - enough to have a very short term impact? Sure. But certainly not enough to materially change long term valuations.