Can we first rewind to the original Tech Panic that started it all?
The First Tech Panic Destroyed the Wealth of the Middle Class…
While Generating Billions for the “Already Rich…”
Eric:
Sure.
Let's look back to the 1990’s. When the internet's rise sparked one of history's greatest bull runs, with $10 trillion flooding into stocks.
Kim, the euphoria was widespread…
- Nokia spiked over 3,000%...
- Qualcomm 17,236%...
- And Cisco, over 69,000%...
Even mainstream news was fanning the flame.
Nine days BEFORE the dot-com bubble burst, CNN published an article saying:
But, Kim, we both know what happened from there…
After that CNN article… the day of reckoning came… and the dot-com crash wiped out $5 trillion from under everyday investors.
The Nasdaq cratered -78%.
The market then entered a "lost decade," failing to revisit its highs for over 15 years.
I mean, imagine making little-to-no returns for nearly 1/5th of your financial life.
Now, Kim...
Armed with that background knowledge...
Let's focus in on 2024.
I want to share with you what I believe to be the most terrifying chart in the stock market.
Kim:
Oh, man, I see the high-flying dot-com tech darlings from the ’90s…
Right up against today's “big tech” titans.
And my god, Eric, their trajectories look identical, as if they’re following the same exact script.
So, by the looks of it, if this pattern continues…
Big tech could be barreling right toward another dot-com style implosion.
Eric:
You hit the nail on the head, Kim.
And at the time, in the 1990’s, if you were paying attention — there was one glaring red flag that could have helped you predict this crash BEFORE it happened…
It’s very simple.
Tech stocks of the time single-handedly accounted for nearly every scrap of gains in the entire market.
Just look…
Notice how the broad market was barely moving, all while tech stocks were surging to record highs?
That's a telltale sign of impending disaster.
It's the distortion that happens before the “house of cards” comes crashing down.
But now, I want you to look and tell me if that chart resembles the market we are in right now.
Do you see the staggering disconnect?
As we speak, only seven tech stocks are propping up the other 493 stocks in the S&P.
It would only take a whiff of bad news from one of these bloated tech giants to send the entire stock market spiraling down.
In fact, Goldman Sachs reports that the market cap of the largest tech stocks now dwarfs the bottom 75% of all other stocks by a factor of 750X.
750 times, Kim.
Talk about having all your eggs in one basket...
Kim:
That's absolute insanity, Eric.
Terrifying.
It's like a massive Jenga tower… and the slightest tremor could bring the whole stock market crashing down — overnight.
Eric:
Precisely. I couldn't have said it better myself, Kim.
But before we move on...
There's another shocking "red flag" that happened before the dot-com implosion 24 years ago...
Behind the scenes, corporate executives were frantically dumping their own companies' shares in an all-out panic.
Now, that's exactly what’s happening again.
Today, it's gone from bad to worse.
Recently...
In a single month, insiders have unloaded a staggering $11 billion worth of stock in their own businesses.
Kim, that's nearly DOUBLE the amount of insider selling that occurred right before the dot-com crash!
I repeat, we’re seeing DOUBLE the selling...
And it's not just executives rushing for the exits...
In the dark…
https://s3.amazonaws.com/marketingassets.cloudsna.com/prod/images/ipm/2405+EFIR+-+Tech+Melt+Up/gfx053-*-Headline+Rip.png
Kim:
The quickest pace in seven months?
So, they are not running… they’re sprinting for the exits…
Eric:
Yep. I think we all know how this ends.
The question stands — do you really want to be left holding the bill when the bottom inevitably falls out?
Because that's where this Tech Panic is headed.
I can’t predict exactly how devastating this panic might be. After all, these panics have a mind of their own.
But the last three major panics caused trillions to drain out from under everyday investors...
Furthermore, this coming panic won’t be just a stock market thing; it could create severe economic devastation as well.
This Situation Is FAR More Dangerous Than Just the Stock Market
Kim:
So, you’re saying this 2024 Tech Panic will not just tear apart the stock market but could rip apart the economy itself?
I’m not sure most folks have the savings to handle that Eric...
But I want to clarify...
Have we seen similar “boom/bust panics” of this size before?
Is this panic a once-in-a-lifetime event?
Eric:
No, actually, this cycle of “euphoria to panic” has repeated itself throughout history.
- It occurred during the Great Depression when the broad market plunged -90% and didn’t recover for another 25 years!
- In the dot-com crash — your investments didn’t recover for 15 years…
- Or more recently, the 2020 crash, when the world's most popular tech stocks dragged the entire market into the largest single-day crash in Dow Jones history…
In each case you could have (not only) avoided the crashes, but you could have re-positioned your portfolio BEFORE the crash — allowing you to profit massively throughout the panic.
Kim, in the case of The Great Depression crash…
Next-Gen Stocks went on to outperform the broad market every year, for over 85 years.
85 years of profits, Kim!
In the 2000 crash, Next-Gen Stocks went on to soar as high 20,438%!
In the 2020 crash…
Amongst all the panic, Next-Gen Stocks jumped 2,020%...
5,609%...
Even as high as 8,437% in just ONE year.
Think about that...
You could have secured 84-times your investment in less than 12 months!
That’s the equivalent of 843 YEARS of what most people make in the markets annually, Kim.
I know it sounds nuts, but it's true.
This is why I've been urgently advising my readers to consider these stocks — as the wealthy elite who profit during these panics are once again piling into Next-Gen Stocks.
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