Dot Com Bubble
The iconic Dot com bubble was caused due to advancement of Internet and rapid growth in adoption of technology. During 1995 to 2000, the IT companies saw a major surge in their stock prices due to increasing confidence of investors leading to unreal valuations for those companies which had a track record of no or little profits.
During year 1995 to 2000, the NASDAQ stock index surged from 1000 points to 5000. Interestingly, this bull run was led by IT companies due to rapid inflow of foreign investment and venture capital funds in such companies.
Soon, after the valuations got expensive and capital dried up in the market, the dot com bubble bursts leading to 78% fall in NASDAQ index. This burst was accompanied by poor results of IT companies leading to negative sentiments in the market and that marks the end of pure speculation and herd behavior of investors over the past 5 years in stock market.