THAT 2000 NASDAQ 4.000 IS DIFFERENT FROM THE RECENT 4.000?

Yes, no doubt. After 13 years the Nasdaq hit again the 4.000 level. Made a nice gain over 35% this year. The question for me was how is that possible to compare the two period 1999 and 2013. And I found some remarkable differences which has been changed since 2000 inside the Nasdaq.

1. At 2000 Nasdaq were merely tech index almost. Now underrepresented the tech companies, they are under 60% from the composite. So now it is a broader index than ever was.
2. At the .COM bubble huge majory of companies were not profitable at all. The P/E ration did not exist at many cases. That is not true today.
3. There were many hot tech companies without any profit. That is not true today.
4. Look at the profitability of Google. This is profitable company and price is over 1k per share. So now the index is much more reasonable priced than at 2000.
5. The market generally is not yet so pricey as it was 13 years ago.

The Nasdaq is the best performer index in US. Beat SP500, DJIA and Russell. And, we see the first break out after 13 years. The upside seems much stronger than the short side.

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The BFM Assets Team.