I can remember back in March 2000 when the Nasdaq was
breaking through 5,300 and dot-coms were trading on very, very thin air. In
fact, that is about all they were trading on. Many of these recent initial
public offerings had very little in the way of plans beyond the IPO moment.
The S&P 500 was trading at a PE ratio range in the
mid-30s back then, and the norm for Nasdaq stocks was usually somewhere in the
triple digits. Tech analysts and go-go mutual fund managers were the rock stars
of the day. The saying going around the market was, "Valuation does not
matter anymore!
Well, here we are an unlucky 13 years later and we still are
not even close to repairing the damage that was done to the Nasdaq in the years
that have followed its 5,300 peak. Read more.
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