By Matthew Kerkhoff
On March 10, 2000 - at the height of the dot-com bubble, the Nasdaq closed at 5048.62. During intraday trading today, the Nasdaq traded past the 5,000 mark for the first time in 15 years. The Nasdaq approaching its prior high has been causing a flurry of discussion about overvalued markets and possible "writing on the wall."
Back in 2000, the Nasdaq spent only two days above the 5,000 mark before it began a rapid decent. By the end of the year the index had lost over half its value and would ultimately fall 78% to just above the 1,000 mark.
While overall market valuations today are a bit lofty by most historical standards, the Nasdaq topping 5,000 - and when it ultimately surpasses its prior closing high - should not be a source of undue fear or apprehension.
The chart below shows the performance of the Nasdaq over the last twenty ... Log in or subscribe to continue reading.