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.
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!
NASDAQ 6,000: Now What? by LPL Research, April 26, 2017.
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