“Don’t Get Greedy”: Mark Cuban Warns Market Looks Like 1990s Dot Com Bubble

While we certainly don’t agree with billionaire Mark Cuban on everything, his current take on the market seems to be spot on. The billionaire took to CNBC on Monday and said that today’s market reminds him an awful lot of the 1990s dot com bubble.

And if anybody had a good feel for the dot com era, it’s Cuban, who made billions off of the boom and managed to cash out before chaos hit, selling his company for $5.7 billion in 1999. Now, he thinks an influx of new retail traders is a bellwether for how frothy the market has become.

Cuban told CNBC: “In some respects it’s different because of the Fed and the liquidity they’ve introduced and the inflation for financial assets that comes with that. But on a bigger picture, it’s so similar.”

He continued: “I had my 18-year-old niece asking me what stocks she should invest in because her friends are making 30% per day and other people just randomly asking me that never look at stocks at all what stocks they should invest in.”

“Everybody is a genius in a bull market. Everybody is making money right now because you’ve got the Fed put and that brings people in who otherwise wouldn’t participate,” he said.

“Don’t get greedy,” Cuban then warned. “It wasn’t like, ‘Oh, we’re in a bubble then all of a sudden the bubble is over months later. It’s difficult to have patience sometimes and recognize that there is still a lot money that can come in and chase that performance.” 

Recall, just days ago we published 3 charts that showed exactly how the market has shifted and changed due to an influx of new retail traders. 

Cuban had also questioned the market’s valuation back in May. The NASDAQ has risen to all-time highs nearly a dozen times since then. 

Regardless, it appears Cuban understands that the market is eventually going to have the better of the Fed – it’s only a question of when. Or maybe Cuban realizes that if we continue down the MMT path we are on to support the markets at all costs, that being a “billionaire” may not mean anything anymore.

You can watch Cuban’s appearance here: