The NASDAQ is partying like it's 1999. But will investors say it's "Party over. Woops!" like they did in 2000?
Set your VCR to record the Sopranos and head out to the movies to see “The Sixth Sense” while driving your Toyota Camry. Just make sure you’ve got Smash Mouth playing on your CD player.
Hey, if the NASDAQ can party like it’s 1999, why shouldn’t you?
In the last year of the 1900s, the NASDAQ Composite Index rocketed up 85.6%. Most of that happened in last quarter of the year, when the index was up over 50%.
But it’s the first seven months of this year that has people wondering if we’ll see a repeat of that bull run. From January 4, 1999 to August 5, 1999, the index was up 20.3%. And, sure enough, from January 4, 2013 to August 5, 2013, the NASDAQ is up 22.3%.
Driving the excitement back in ’99 was that new-fangled invention called the Internet. And, helping to drive the NASDAQ index now is that old-fangled invention called the Internet. Stocks like Facebook (+43% year to date), Yelp (+176% year to date), and Angie’s List (+94% year-to-date) are making headlines and getting investors to buy stocks with short track records and no physical products.
But, we know how the NASDAQ party of 1999 ended: A miserable 2000, where the index fell nearly 40%.
So, is this time different?
Talking Numbers contributors Enis Taner, Global Macro Editor at RiskReversal.com, and Richard Ross, Global Technical Strategist at Auerbach Grayson, take a look at the fundamentals and technicals of the NASDAQ Index what’s next in tech.
To hear Taner and Ross analyze the NASDAQ, watch the video above.