Ma Guangyuan: The current market indeed resembles the period before the burst of the 1999 bubble.

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Golden Finance reports that on May 12th, economist Ma Guangyuan wrote that the current market indeed resembles the bubble burst of 1999.
Why compare it to the 1999 market? Because everyone knows that 1999 was the peak of the internet frenzy that year, with the NASDAQ index increasing about 400% from 1995 to 2000, but in just 18 months from 1999 to 2000, it surged approximately 150%.
Cisco, Yahoo, AOL, Amazon had P/E ratios generally between 100 and 300 times, with many pure concept companies going public, skyrocketing 300%–1000% immediately upon listing, with no revenue or profit.
After the internet bubble burst that year, the NASDAQ index fell extremely sharply.
In March 2000, the NASDAQ hit a peak of 5048.62 points, then plummeted to 1114.11 points by October 2002, a total decline of 78%, with the entire market capitalization evaporating over 5 trillion USD.
So today, everyone is talking about the AI narrative, everyone is discussing AI.
If you go back and look at those stories and narratives, they are almost exactly the same as today.
The market suffered a devastating blow, so when everyone is talking about the AI narrative, discussing AI, valuing AI, and telling stories about AI today, everyone will think of the internet bubble burst back then. (Dongxin News)

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