CANNAINVESTOR Magazine October / November 2016 - Page 24

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THE SKY IS FALLING …. THE SKY IS FALLING …

With greater frequency, comparisons are being made to the dot.com era and in some cases some are predicting the same outcome by referring to the green rush as the “dot bong bubble” that may be on the verge of bursting. Books and articles have been written about the dot.com era; however, a brief summary of that period follows and is needed in order to understand why this is not a repeat of the dot.com era.

THE DOT.COM ERA (SIX YEARS IN 4 PARAGRAPHS!)

1995 is considered as the start and it reached its peak on March 10, 2000. The next day, the sell-off of tech stocks commenced and lasted until October 9, 2002 with the Nasdaq losing 78% of its value in that timespan. The Green Rush according to those that make this comparison will be no different often reference company valuations that at face value appear to defy all logic.