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Fundranker Blog—May 2015 Archive

Nasdaq Hits All-Time High

The Nasdaq Composite Index set two new all-time highs on April 23 and 24, 5056.06 and 5,092.08, more than 15 years after its previous all-time high of 5,048.62, set on March 10, 2000, during the dot-com boom, but it backed off those highs by the end of April.

During that 15-year period, the Nasdaq Composite Index suffered two very serious bear markets and enjoyed two significant bull markets.

It hit a closing low of 1,114.11, down 78% from 19 months earlier on October 9, 2002, during the dot-com bust.

The Nasdaq Composite Index clawed its way back to an intervening bull market high of 2,859.12 on October 31, 2007, up 157% from five years earlier, during a real estate and financial system deregulation boom.

But when sub-prime mortgages blew up, starting a financial crisis and the Great Recession, it fell again to a March 9, 2009, low of 1,268.64, down 56% from 16 months earlier.

During the six-year plus recovery from the Great Recession, the Nasdaq Composite Index rose to its new all-time high of 5,092.08 on April 24, up 301% from its 2009 low.

While the S&P 500 index has made real (inflation-adjusted) all-time highs in 2015, the Nasdaq Composite Index is a long way from setting an inflation-adjusted record. Using March 2000 and March 2015 Consumer Price Index data, the Nasdaq Composite Index would have to reach 6,701.65 just to match its 5,048.62 March 2000 all-time high on a real (inflation-adjusted) basis.

Posted 5/4/15 9:02am ET in Market | Permalink | Comments (0)