harrison1821

How Big is the Tech Bubble?

A ratio chart divides the value of the Nasdaq 100 by the value of ( S&P 500+Dow 30+Russell 2000). The large spike in the blue line to the left illustrates how the NQ became so overvalued in relation to the S&P , the Dow, and the Russell.

If the ratio pulls back, I would say it may find its balance around the lower red line, after retracing the recent parabolic spike like it did in 2000.

I think it will keep going higher. I think the high prices of tech stocks are more legitimate this time around.

I believe I just made a "this time is different" type of comment lol.

Thoughts?
Stick to the plan, Harrison

Comments

P/e ratio of Nasdaq in 2000 175 near bubble top, today, 23.8

I agree with you here.

2000:

Cisco: ~4000%
Microsoft: ~1600%
Oracle: ~1200%
100 coins
+2 Reply
Good long term view analysis!
I'm waiting this correction since december :D
+1 Reply
What’s the price of the red line?
+1 Reply
@Wazimoto, It's a ratio chart, so the price at the red line depends on the relative value of NQ against the three other stock indexes. There is no straight answer, unfortunately.
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