As it turned out, Amazon’s business model was successful and the investors who waited out the company’s long incubation period have benefitted from an appreciation in the value of their holdings, but the majority of similar ventures went belly up, resulting in the collapse of the Dotcom Bubble.
With near-term economic prospects in the United States still somewhat clouded, market commentators have increasingly focused on the possibility that the United States may follow Japan into a deflationary slump. However, I do not believe that the United States is at the brink of significant and sustained deflation. Indeed, I believe that the probability of such an eventuality is quite low.