Are stock markets heading for another dotcom-style bust?

Twenty-one years ago the US stock market collapsed after an explosion of irrational speculation. As the GameStop frenzy reminds people of that era, could we be about to see a repeat? Ben Chu investigates

Is GameStop a microcosm of the broader market, an indication that something more fundamental is out of kilter with reality? (New York Stock Exchange/AP)

The frenzied and downright bizarre trading in GameStop and silver in recent days has reminded some veteran market watchers of the conditions in the run-up to the bursting of the dotcom stock market bubble at the turn of the millennium.

That period also saw wild leaps in valuations of companies with very uncertain prospects.

The US stock market peaked in March 2000 – and fell by 50 per cent over the next two years.