Is celebration or caution the byword as the NASDAQ, now just short of 4300, closes at a price not seen since 2000. Our diagram illustrates the two faced aspect of this near record setting day. It shows the NASDAQ’s steep rise in 2000, in step with the dot-com boom, and then prices plunge. They dropped from 5048 down to 3321, in just 15 days.
Yes, there was an immediate recovery, but it was short-lived, as the market continued its free fall for the next two years.
This surely is a different market than the speculative craze that was the way of life in 2000. Interest rates are down, as the Fed has been accommodating to get the economy going again. Yet at 1,247 trading days since the 2009 low, this bull market is mature.
DJIA .64 percent
NASDAQ .69 percent
S&P500 .62 percent
