There may be a storm brewing—that’s what one stock market watcher is warning.
As Brad McMillan, chief investment officer of Commonwealth Financial Network, wrote in a recent blog post, the state of our current economy and market are similar to how they appeared back in 1999, “the year before the dot-com bubble burst and stocks were plunged into a bear market,” notes Business Insider.
McMillan writes, “The tech industry is booming, unemployment is low, consumer and business confidence are high, and investors are very complacent.” (It’s indicators like these that were present in ’99; for example, business confidence is even higher than it was back then, as is the level of monetary stimulus from the Fed, per Business Insider.)
But he cautions investors: “Now, 1999 was a good year, just as 2017 is shaping up to be a good year. With the wisdom of hindsight, though, we know that even as things were great, the seeds of the next downturn were already growing. What we really need to know is not what the comparison tells us about today, but what it means for us in the future.”
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