“It’s different this time”

It always is.

You can basically spot a bubble when the fundamentals go out of the window. Mature companies have a P/E of around 15-20. If your P/E is more like 65 or 300, that should be because you’ve still got a hell of a lot of growth potential. But those are the P/Es of Facebook and Amazon respectively. Is Facebook honestly going to grow 4 times in the near future? Well, it’s customer base literally can’t. Is Amazon going to grow by 20 times what it is in the fairly near future? Of course not.

True, and this point resonates, too.

Last time around, people were making tools, or making tools to make tools. Routers, databases, servers, switches, chips, you name it. This time around, the only “product” being made is gobs of big data in the hope that some sort of marketing angle can be gleaned from it.