AMZN 52 week low, Dot-Com crash?

Amazon closed at a 52-week low. The whole market's confused at what's going to happen next. Here's what you should be worried about, and perhaps why you shouldn't be worried at all.

First off, as a reminder, Amazon, Netflix, and non-dividend stocks are not ownership instruments; they are Ponzi assets. You don't receive anything from the company. The only way you get your money back is taken from another investor. This is why you would have actually lost 10 percent if you held Amazon over the past year and a half, while they made 38 billion dollars. The reason that's important is to understand that non-dividend stocks really have no logical level of price support. They can crash another 80-90 percent before the company might step in and start buying back their stocks with an attempt to go private.

Now that's a background, and here's the concern: which is, are we seeing something similar to the dot-com bust? What happened during the dot-com bust was you had a bunch of tech companies that didn't make any money, issuing stocks, and then their stocks were getting ponzied up into insane heights. At some point, it all came crashing down, and many of those companies completely disappeared. Three years ago, I did a v-log about this, citing research from the University of Florida, talking about how we were already in a dot-com cycle because we had a bunch of companies that were going public—tech companies who weren't making any money—and their stocks were just getting ponzied up.

Now the real concern about the dot-com crash is that it took a decade for the prices to come back. The question is, is that going to happen again? Which is why some people are warning against buying essentially those tech stocks, growth stocks, on the dip. Now, I'm going to be a little more optimistic about the world's biggest Ponzi scheme, mainly because nothing ever happens identically the same way twice in seconds. This is no longer the year 2000.

But most importantly, if we look at the recovery time, yes, it took almost 10 years for the prices to recover from the dot-com bust. But then it took about four years for it to recover from the 2008 financial crisis, and that took about four months for it to recover from COVID, which was, by the way, the zombie apocalypse. So, as you can see, the recovery time for these major crashes are getting smaller and smaller.

So, I would be very surprised to see us return to some kind of dot-com crash situation where it takes 10 years for prices to recover. Because, from COVID, we also know that the world, U.S. government, is going to do whatever they can to back the world's biggest Ponzi scheme. So I think at most, it's going to take a few months for prices to recover if we see a major crash.