Investing Like its 1999

Today’s AI-driven climate reminds me of the 1990s internet-driven stock market bubble. I can recall, like, yesterday, when I decided to de-risk our portfolio. Flying from Oklahoma City to Houston, I overheard two young guys discussing their portfolios. They were planning to retire in less than five years. I could hear the 'hot tips' they were sharing. When I got home, I told my wife why I was selling a significant amount of our portfolio—those dudes on the plane. Liquidating 30% of our stock portfolio in February 2000 helped us avoid some of the losses. The NASDAQ peaked on March 10, 2000, at 5,049. The major selling started after that and continued through April 2000. The NASDAQ bottomed out on October 9, 2002, at 1,114. Down 78% from the March 10, 2000 high. Driven down more by the September 2001 terrorist attack on the Trade Center and DC. Market bottoms correlate with bad black swan events. Fear dominated the headlines. Today's AI-driven bubble feels like the dotcom bubble. Huge…