Comparison of Selected Market Indicators During the Dot-Com Bubble

Since the outbreak of the recent financial crisis in 2007, central banks around the world have lowered interest rates while stock markets soared. On the example of North America, Europe, and Asia and in particular the United States, Germany, and China, the situation as of December 2015 is compared on the basis of economic theory and selected key performance indicators to the United States dot-com bubble in the nineties years of the twentieth century. Literature review offers a complex general view on the issue of market bubbles with a historical review of the situation in 2007 and 2008. The only indication of a bubble can be found in the China Securities Index 300, more specifically in the technology sector. The further aim of the paper is related to analyse and compare returns of the explored indices among the regions and the sectors. On a broader level, the study finds that even though there are similarities, the current rise in indices does not qualify for an asset price bubble. Conclusion sums all the observed findings on both the levels - regional and national. Also, it offers suggestions for discussion about the situation on the markets after the financial crisis.