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Ten Years Later…The NASDAQ Composite Index
By JLP | March 9, 2010
This graphic says it all:
Think about it…
If someone would have told you on March 10, 2000 that the high-flying NASDAQ Composite Index would be worth less than half it’s value on March 10, 2010, would you have believed them?
I might have believed them as I was highly suspecting of an internet bubble back then (just ask my wife who will probably remember my rantings back then…lol.). That said, I don’t think I would have expected the Composite to be worth less than half it’s peak value ten years later. I think that’s just proof as to just how overvalued tech stocks had become.
Anyway, Happy Anniversary to the Tech Bubble!
Topics: Investing | 4 Comments »
March 9th, 2010 at 4:41 pm
Nasdaq today is only worth a 1/3 of the 2000 value, if you adjust for inflation. I doubt the nasdaq will ever see those levels again: similar to we will never see tulip prices as high as they were in 1637.
At least the 10-year return for the nasdaq will start looking better once that peak moves on out.
March 9th, 2010 at 5:22 pm
BG,
You’re wrong. Tulip prices are coming back! I have 2/3rds of my retirement portfolio in them; they have to!!!
March 9th, 2010 at 10:49 pm
As the Internet and technology is still booming, even in the coming 10 years, expect substantial changes in the nasdaq composite index.
March 10th, 2010 at 10:06 am
The Japanese think this is not so bad. The Nikkei hit a high of almost 40,000 on the last day of trading in 1989. It has not been close to that since then.
What do these observations say about the future progress of the latest bubble that burst – housing?