Billionaire Mark Cuban told CNBC on Monday that the stock market rebound from its coronavirus-driven low in late March reminds him of the dot-com bubble of the 1990s.
“In some ways, it is different because of the Federal Reserve and the liquidity that they have introduced and the inflation of the financial assets that it entails. But in a broader perspective, it is very similar,” Cuban said in “Squawk Box.”
Cuban, who made billions of dollars during the dot-com boom, signaled the new interest in the stock market by people who weren’t interested before, like his teenage niece.
“I had my 18-year-old niece asking me what stocks I should invest in because her friends earn 30% a day and other people randomly ask me never to look at the stocks in which stocks they should invest,” she said. Cuban, who sold Broadcast.com to Yahoo in April 1999 for $ 5.7 billion.
“Everyone is a genius in a bull market,” said the Shark Tank investor. “Everyone is making money right now because you have the Fed on and that attracts people who would not otherwise participate.”
Cuban said he told his niece that the only way to keep the money he makes on the stock market is to “collect.” He said, “Don’t be greedy.”
As of Friday’s close, the tech-heavy Nasdaq had risen nearly 60% from its intraday low of March 23, the same day the Federal Reserve announced an unprecedented batch of programs to support financial markets , which were accumulating due to the coronavirus crisis.
Cuban, who questioned the market’s valuation in May, told CNBC on Monday that the internet bubble lasted for several years. The Nasdaq increased more than 500% from 1995 until the bubble burst in March 2000.
“It wasn’t like, ‘Oh, we’re in a bubble, suddenly the bubble ended months later,'” Cuban said. “Sometimes it is difficult to be patient and recognize that there is still a lot of money that can go in and pursue that performance.”
Cuban, also the owner of the NBA Dallas Mavericks, said his personal stock portfolio is still full of stocks from Netflix and Amazon.
– Disclosure: CNBC holds exclusive cable rights outside the network for “Shark tank, “in which Mark Cuban is a co-host.
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