The Nasdaq closed at 5,225 points on August 9th 2016. With that, the technology index Nasdaq set a new all-time high in 2016. Unsurprisingly, we saw quite some headlines like this one Nasdaq Notches Another All-Time High or this one Nasdaq Composite marks 2nd record close of 2016.
According to Wikipedia’s Nasdaq all-time highs, it is the second time this year that the tech index closes at all-time highs. Interestingly, exactly 30 years ago, before the 1987 crash, the index was trading around 450 points. What a return if one had put his money on this index for 30 years.
From a chart perspective, we see that the index wants to go much higher. We can derive this from several observations. On the one hand, this is the third test of its all-time highs (any asset mostly requires three attempts to break through important resistance area’s). On the other hand, intermarket dynamics are lined up to push stocks higher, with positive risk indicators as detailed in What’s The Message Of These 4 Risk Indicators? Markets Are Lined Up For Risk ON.
From a portfolio perspective, technology stocks are a MUST HAVE in anyone’s portfolio. The next chart makes that point. It shows the ratio of the Nasdaq index versus world stock markets. The Nasdaq is visibly outperforming world stock markets, which is no surprise, but simply another confirmation that good tech stocks should be part of a good portfolio.
Comments
Log in or sign up to join the conversation.