The Nasdaq Has Finally Budged After 18 Years

On March 10, 2000, at the peak of the internet bubble, the Nasdaq closed at 5048.62. It took more than 15 years, posting 113 new highs along the way, for the index to break back above that record-high level. Though, from another perspective, it may only just be getting into unchartered territory.

With inflation all over the news, we decided to look at the Nasdaq (in inflation-adjusted terms). Incredibly, the index crossed above the peak set in 2000 in late February. In other words, it has gone virtually nowhere for 18 full years. “Think about it like this, adjusted for inflation, the Nasdaq is only 2.0% above the peak in 2000. That comes out to a whopping annualized return of 0.10% over the past 18 years. When someone says tech is in a bubble this chart screams that it is anything but,” suggested Ryan Detrick, Senior Market Strategist.

IMPORTANT DISCLOSURES

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

Past performance is no guarantee of future results. All indexes are unmanaged and cannot be invested into directly.

Stock investing involves risk including loss of principal.

The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S.-based common stocks listed on the NASDAQ stock market. The index is market-value weighted. This means that each company’s security affects the index in proportion to its market value. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. It is not possible to invest directly in an index.

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Securities and Advisory services offered through LPL Financial LLC, a Registered Investment Advisor Member FINRA/SIPC

For Client Use — Tracking # 1-709458 (Exp. 03/19)