26 Nov Nasdaq Closes Above 4000 – First Time in 13 Years

As the stock market continues its strong surge another milestone today as the Nasdaq Composite Index closed above 4000 for the first time since 2000. The Nasdaq is up 33% this year, more than the other key market indeces. The tech stocks in particular have done well. But we’re still not near the Nasdaq’s 5048 record high reached on March 10, 2000. Boy I remember that month, do you? Shortly thereafter the dot-com boom went rapidly bust. Sadly the Nasdaq still has not fully recovered from that period, but a terrific rally capped by the big close today.

The Dow Jones Industrial Average has continued hitting record highs the last four sessions. The markets went up today mostly because of a better than expected housing report. So what’s going to happen in the months ahead? Will there be a correction? Is this another round of “irrational exuberance” without strong enough economic data to justify the heights in prices? Is it time to sell? Time to buy?

I have no clue. And anyone who says they do, unless they have the billions to show for it, probably don’t really know either. What I do know: it is better for the capital markets and the fund-raising environment for smaller companies when the markets are doing well. So go Nasdaq!