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Daniel Loh: On The Brink Of Another Dot.com Bubble?
Aspire, Thought Leaders | 06 March 2015
By: Vance Wong
Articles (74) Profile

Source: Quartz.com, FactSet

Do you see a trend that might be about to repeat? The prospect of a repeat of the dot.com tech bubble burst is rearing its ugly head again.

Meteoric Rise of the NASDAQ

Ever since the drop to a rock-bottom in 2002, the NASDAQ index has found its way back to all-time highs of over 5,000 earlier this week. Some experts have been speculating about a sharp correction happening soon, while others are skeptical about such a drop anytime soon.

The Collapse Is Beginning?

(Apple vs NASDAQ) Source: FactSet Fundamentals

Sitting comfortably on the top of the NASDAQ, Apple’s stocks have achieved an all-time high after their recent launch of the iPhone 6 and 6 Plus just last year. However, bearish analysts have been saying that this success might not last long, especially if their upcoming iWatch does not deliver results.

(Zynga vs Yahoo vs Yelp vs NASDAQ) Source: FactSet Fundamentals

However, the share prices of other notable tech players like Yahoo, Yelp, and Zynga, to name a few, have been taking a beating even as this article is being written. In particular we note the huge drop in the share prices of Yelp, and Zynga, whose prices have been plummeting since last year.

(Alibaba vs NASDAQ) Source: FactSet Fundamentals

Once heralded as the next big thing to happen to the tech industry, Chinese e-commerce giant, Alibaba has seen its share price dropping too. This could largely be due to its legal problems with the US and Taiwanese governments.

Too Bearish?

Daniel Loh however, feels that such prescriptions are too bearish. His point of contention lies in tech giant, Apple.

iPhone 6 and 6 Plus. Source: Apple.com

Why is that so? The main issue is with the heavy weightage that Apple has on the NASDAQ. The weightage is so high such that Daniel feels where Apple heads, the NASDAQ will too.

While nobody knows for sure whether a tech bubble exists or not, investment guru, Daniel Loh intends to shed further light on what investors like you and me can do in the event of such a crash. As the saying goes, it is best to be fearful when everyone is greedy.

Update (10 March 2015): The Apple iWatch was released today and receiving some negative reviews from various notable figures in the tech industry. Martin McNulty, CEO of a digital agency and more than 15 years of online marketing experience was skeptical about the watch being another “killer product.” The main reason for his skepticism is that it seems like the Apple iWatch is “looking for a problem to solve.” The targeted market is supposedly the 25-34 year-olds in the Asian market, a very niche group as compared to the iPhone. Will the iWatch make a breakthrough?

On another note, following the Apple Keynote, the NASDAQ climbed up momentarily and fell but is still treading within the positive range at 4942 at SGT 11am. It is still too early to tell if the Apple iWatch will not be successful, noting that Apple also revealed an all-new MacBook.

The details of the exclusive workshop are as follows:

Venue: 51, Anson Road, #03-53, Anson Centre

Date: 14 March 2015, Saturday

Time: 1pm to 4pm

Click here to register for this exclusive free workshop!

With a Communications background, Vance has the passion to write with a purpose - to provide content supported with substantial evidence to vested readers.

Please click here for more information about this author.


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