Barton Biggs died, the analyst who predicted the bursting of the dotcom bubble
At the end of the decade of the ’90s was coined a term that would justify an uncontrollable flood of investors about Internet-based Emprendimentos, known as “dot com”. The term “New Economy” stated that until then the Economy based on manufacturing and industry, evolved inevitably moving towards a knowledge based.
This revolution in the way of doing business generated the interest of millions of investors offered large sums of money to companies that in many cases only existed within a folder on a business plan.
By 1997, this growth began to flood the media around the world already knew daily new rich who managed to sell their companies for sums in the millions. Meanwhile, analysts enjoyed to talk about this new economy, but some began to suspect.
Among them was Barton Biggs, the man who would have predicted the fame bubble burst that included the major Internet companies during the late ’90s.
In 1997, Biggs noted that action on most of the world were very expensive. Two years later, in January 1999, warned that a boom in the securities of companies on the internet end up with a tremendous explosion that would leave a trail of victims. Just over a year later, the NASDAQ climbed to a record high.
At that time, the analyst Biggs was part of Morgan Stanley Investment Management, a company he founded in 1975 and which was its president until 2003.
The peak value reached these technology companies in March 2000 began a dizzying tailspin as predicted Biggs, noting that this “New Economy” had no real substance to justify some sort of gain that just might pay off the huge investments it received.
Over the next two and half years, the bubble burst of the dot com made the NASDQ lost about 80% of its value, falling back to levels similar to those of 1996.
Barton Biggs’ left an indelible mark on our business, our culture and our shared understanding of leadership at Morgan Stanley, “said James Gorman, Managing Director of MS in a memo to the company that Biggs had founded.
Author of three books, an infantry officer in the United States Navy and graduated from Yale University, Barton Biggs, the man who saw it coming the biggest explosion of all economic and financial history in the world of technology, has died at 79 years.
Link: Died analyst who predicted the dot-com crash (Associated Press)Tags: barton biggs, bubble, dotcom bubble, Economy, NASDAQ