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 1 · The anatomy of a hype cycle
nic The Gartner Hype Cycle
We hit the peak then we take a dive—(oh, we dive!) / But the steady slope is how we survive—(yeah, we survive!)
nic Investor expectations trigger a feedback loop of rapid price inflation and sharp crashes, a pattern named after the 1720 South Sea Bubble.
Quiz
During the British Railway Mania of the 1840s, what economic change helped trigger the crash?
Fun Fact
Tulip fever: In 1637, a single Dutch tulip bulb could cost more than a luxurious historic mansion.
Quiz
By how much did the Nasdaq Composite index drop from its peak in March 2000 to its low point in October 2002?
Quiz
Why did the dot-com bubble burst despite the internet actually transforming the global economy?
Glossary
hype cycle (noun)
A conceptual model representing the typical phases of public expectation and adoption for a new technology. During the 1840s, British investors followed this pattern by pouring their savings into thousands of unbuilt railways.
A conceptual model representing the typical phases of public expectation and adoption for a new technology. During the 1840s, British investors followed this pattern by pouring their savings into thousands of unbuilt railways.
Quiz
In the Gartner hype cycle, what phase immediately follows the 'Peak of Inflated Expectations'?