Jim Cramer: The Market is Rational, Unlike the Irrationality of 1999

The Irrationality of 1999

• 💡 In the fall of 1998, the market began to see stocks like Circle Internet and Figma rally sky-high for no apparent reason.
• ⚠️ By 1999, the rational side of the market was lost, with irrationality dominating and hundreds of companies going public.
• 📉 Nearly all companies that went public during this period were gone within two years, leading to a generation of investors soured on the market.
• 💸 By 2000, the market was almost pure froth, with companies having no revenue or business plans, yet still seeing massive IPOs.

Current Market vs. Dot-Com Bubble

• 🎯 While there is some froth in the current market, there are also legitimate moves in the stocks of great companies.
• 📊 The current market is nothing like the end of 1999 or March 2000, when the dot-com bubble burst.
• 🚀 Despite discussions of quantum computing or advanced transportation, the market remains rational.