FAST FIVE: This Looks A Lot Like The Dot-Com Bust With One Big Difference – Inflation
During a similar two-month rally from May 27 through July 17, 2000, the NASDAQ jumped by 33% without ever getting back to its old high.
That bear-market rally in the summer of 2000 suckered a lot of people back into the market, thinking that stocks would be going to the moon again, and they got crushed.” The difference between then and now is we have a CPI over 8%.
Instead, we saw asset prices spike – particularly the stock market and real estate.
Suddenly, the inflation started showing up in the CPI.
That was when the banks stopped lending to the repo market, which then blew out, which cause the Fed to bail it out in September 2019.