My Family's Dot-Com Bubble Lesson. 3 Funds to Hedge Your Risk.

Happy Monday, wealthy people! 

Last week’s severe sell off in Tech stocks (NVIDIA down more than 13%) sparked fears of a Dot-Com-bubble-style burst. Are we in a bubble? Some stocks are extremely expensive with 31x Price-to-Sales ratio (anything that trades well over 10x Price-to-Sales is) but at least most of these Tech companies have real revenues and earnings (unlike the Dot-Com era). Frankly, the market had been going straight up for months (and still is up +18% since October 2023), so a correction was overdue.

It still made me think of the Dot-Com bubble. I remember when the bubble burst in 2000. I was in middle school, living in a small Greek town. I had no clear grasp of what was happening in the stock market, but I remember how it felt to witness it. At first, my hard-working, middle-class father started watching the financial news, the ones with ticker tapes playing in a loop on the bottom of the TV screen. I couldn’t wait for the news to end so I could watch Friends and found those moving numbers annoying.

But my father seemed fascinated by the tickers, at times exclaiming in victory, fist up in the air, or playfully swearing at a small loss as if it was no big deal. He promised to soon buy the larger car our family needed.

He started going to the kafenio, the coffee shop reserved for older Greek men, for hours to watch the stock market news. He wasn’t the only one. {READ THE FULL ESSAY HERE}. 

In today’s email:

👉 Stock Market Update 

👉 Fund Corner - Funds used for Hedging

Grab your latte and let’s get started!