NASDAQ IS OVER 4.000

After 13 years the first time traded the Nasdaq over 4.000. The index yesterday closed at 4.017 with a daily gain of 0,58%. The lowest rate was in the last 52 month was at 2936. It is more than 50% gain. That is brutal. So most of investors get started talking about the bubble effects. Just take a look behind the curtain and look at the core facts and try to summarize a bit.

In 2000 at the Dotcom Bubble was the price last time here at 4.000. Let’s look at some data comparing that period and the recent one. In 1999 and 2000 the market was super overvalued. I remember well that time there was a real euphoria, everybody just closed the eyes and was buying like an idiot. That was one of the most crazy bubble in the history of markets. Now is perfectly different. I don’t see the same investor attitude around me.  I don’t realize that the markets are overheated.

	December 1999	Today
P/E ratio	29.7	19.1
CAPE  - Shiller PE ratio	44.2	24.4
Price/Book Ratio	5.1	2.6
Price/Sales Ratio	2.4	1.6

All in all today the Nasdaq is far less overvalued than it was in 1999 and 2000. The market’s current valuation is still solid and seems no extreme at all.

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The BFM Assets Team.