3 Lessons for Investors From the Tech Bubble
Bigger fools. The nature of bubbles, however, is that no one can tell when they'll pop. If the Nasdaq was overvalued in 2000, it was also overvalued in 1999 and 1998 and 1997. Investors rushed to buy stocks in the late 1990s so they would not miss out on the profits that their friends were making. The buyers, many of them overloading their portfolios with big-cap tech stocks, firmly believed they could sell to some greater fool who would always pay more than they did.
