Nasdaq Breached 5000 level
Simple Investing Summary: Nasdaq has caught up with indexes in terms of making new highs. Technology and Healthcare sectors are propelling Nasdaq higher.
The other day Nasdaq closed above 5000. This is big psychological number and has a lot to say about the current stock market and the underlying economic fundamentals. It was 15 years ago on March 10, 2000 when Nasdaq reached an all-time high of 5048. Does this level conjure memory of the tech bubble from that era? There were technology businesses sprouting all around the silicon valley by the dozen every day and going IPO at the fastest pace. Young entrepreneurs shot up to the millionaires status overnight and just as fast lost everything like a roll coaster ride. It wasn’t at Six Flags or any Disney park – it was the dot-com bubble.
This time around it seem different as the valuations are not very high and the companies going IPO are little more mature compared to 2000. They have something to show for. Now Twitter is still losing money but it will survive and I believe they will thrive in a few quarters. In the past few years, the technology landscape has changed dramatically all over the world. Nasdaq hosts a lot of the technology companies creating products and services that are being consumed at a fastest pace.
Nasdaq rise to this level is attributed to technology and healthcare companies. Technology companies are on a rise as companies increase their spending on equipment and software to cut costs and improve productivity. Healthcare stock are climbing as investors believe biotechnology companies will deliver the next blockbuster drug. Apple stock has a large impact on Nasdaq. It market value has surged above $750 billion from $22.5 billion in 2000.
It’s all about mobile, social and cloud now. These 3 aspects of technology have changed the way we live, work, play and anything and everything in between. Starting with iPhones, the apps, Facebook, Uber and Dropbox and more like these, things have changed so much from the early tech days of 2000. Even Microsoft office had gone in the cloud. Who would have thought about that!
Perhaps you are reading this post on your phone through the responsive web design platform. Check out the site on a regular desktop and see the difference. Drag and shrink your computer browser and see what happens. Here’s to Nasdaq 5000 and responsive web design!