Like I keep saying, there are too many similarities between today and the early 2000s to sit back and accept the "it's different this time" mantra coming from Wall Street.
Now, indeed, perhaps it is (different this time), but even the present-day arguments in that regard are eerie echoes of the tech-inspired mantra of the late-90s.
Fiddling around with graphs this morning, something's jumping out at me...
Take a look...
Here are the S&P major sectors % changes during the 5 years leading into the early 2000s tech disaster. Note the gaps forming leading into the 1998 19% correction, then the massive divergence (tech leaving the pack, especially) before the S&P got sliced in half, and the Nasdaq imploded into a devastating -85% 3-year freefall:
How about the period leading up to the Great Financial Crisis of 2008, when the S&P 500 gave up 57% of its value over ~17 months:
"It is only by obtaining some sort of insight into the psychology of crowds that it can be understood how slight is the action upon them of laws and institutions, how powerless they are to hold any opinions other than those which are imposed upon them, and that it is not with rules based on theories of pure equity that they are to be led, but by seeking what produces an impression on them and what seduces them."