Friday, April 24, 2015

Finally!

Finally, fifteen years after setting its previous all-time high, the Nasdaq market closed at a new record yesterday. Thursday's finish at 5056 just barely nosed out the 5048 set on March 10, 2000, at the peak of dot-com-mania.

It's been a pretty uninspiring 15 years. Since March 10, 2000, the S&P 500 has generated an average return of 4.78 percent annually, even with the crash of 2008-09. But the Nasdaq Composite has returned less than 1 percent on an annual basis over that time frame.

Of course, many of the high-tech companies that fueled the Nasdaq's rise have gone out of business since then, but the bigger stocks have suffered too. Yahoo has lost more than half its market cap since March 2000, and Cisco’s stock has fallen by two-thirds.

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