Dotcom wealth now completely eroded
All the wealth the Nasdaq had created during the tech bubble of the late 1990s has finally been wiped out - the market is now lower than it was in 1996 when the dotcom boom started taking off.
Link: Dotcom crash fuels insolvency
According to the Mercury News a sudden sell-off, sparked by a warning of poor profits at a key tech firm and further economic worries, hit tech stocks particularly hard.
The collapse of the bubble has now destroyed $4.4 trillion of wealth in the Nasdaq composite stocks – including $1 trillion in Silicon Valley’s 150 largest companies. This is more than the bubble actually created.
This week the Nasdaq at stands around 1180 – around 75% below its peak.
Optimists claim the rebound to come any day now as people seize the chance to catch the next tech wave at cut prices.
A bullish Cisco chief executive John Chambers told investors at the Bank of America conference that while the downturn has lasted longer than many expected ‘When the recovery occurs, I think it will be quicker than people expected.’