Published by Taylor Financial Group
The NASDAQ has once again reached a new milestone, closing above the 6,000 range. The last NASDAQ milestone occurred when it exceeded the 5,000 level on March 9, 2000. Although breaking records sounds impressive, it actually equates to a 1.0% annualized price return since 2000. However, when evaluating the nominal prices, the NASDAQ reflects a definite record high.
Technology Boom
Although the NASDAQ is heavily invested in the technology industry, and despite the skeptics’ view of a possible “technology bubble,” less than half of the Index’s total market value consists of technology. Evidence suggests that the technology sector is not in a bubble, but could be the very start of a new trend. The Dow Jones U.S. Technology Index Chart below depicts more detailed insight into the performance and historical highs among the technology industry, and supports the notion that the technology sectors are only at the start of their impressive performance, as technology has been mostly flat since 2008. Fortunately, it looks like technology will continue to remain a favorite sector among the experts, because it yields strong earnings, maintains attractive valuations, and technicals continue to improve. We are keeping our eye on the technology sector as we think it may continue to outperform in the market going forward.
If you have questions about how the NASDAQ or the technology sector might affect your portfolio, or if you have any other questions, contact us today!
Sources:
NASDAQ 6,000: Now What? by LPL Research, April 26, 2017.
Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Investment advisory services offered through CWM, LLC, an SEC Registered Investment Adviser. Cetera Adviser Networks is under separate ownership from any other named entity.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
This information contained in this e-mail message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.
