

Chapter 1
The anatomy of a hype cycle
Chapter 2
Inside the AI gold rush
Chapter 3
How to spot the warning signs
Chapter 4
Smart strategies for calm heads
Ch 3 · How to spot the warning signs

nic Dividing share price by earnings per share calculates the P/E ratio, which soared over 400 during the 1999 tech bubble.
Quiz
What does an extremely high price-to-earnings (P/E) ratio usually indicate about a stock?
Fun Fact
Dot-com name change: In 1999, a company called Zapata changed its name to Zap.com, causing its stock to double instantly.
Glossary
margin debt (noun)
The amount of money borrowed by an investor from a brokerage firm to purchase securities. United States margin debt crossed one trillion dollars for the first time in 2025.
The amount of money borrowed by an investor from a brokerage firm to purchase securities. United States margin debt crossed one trillion dollars for the first time in 2025.
Quiz
Who famously avoided the 1929 stock market crash after receiving stock tips from a shoe-shine boy?


