If investors in the S&P 500 index (NYSEARCA:SPY) are having a great year, people who bought the NASDAQ Composite Index (NASDAQ:QQQ) are having a fantastic year. While the market benchmark S&P 500 is up 28%, the NASDAQ is up 37.5%. Only six times in the last quarter century have returns been so high.
Only recently, the NASDAQ traded once again above 4,000. That’s territory not seen since 2000, when the NASDAQ was coming off its highs. Back at the end of 1999, the NASDAQ breached the 4,000 mark for the first time. By March 2000, it crossed the 5,000 only to begin its fall back to 1,114 by October 2002.
If the NASDAQ were to have another good year, it could get to 5,000 once more. It wouldn’t have to be as good of a year as 2013, either. The 5,000 level is a little more than 20% higher than where it is today. How likely is that?
Gina Sanchez, founder of Chantico Global sees the index’s highflyers like Facebook Inc (NASDAQ:FB) and Amazon.com (NASDAQ:AMZN) as having propelled the NASDAQ above 4,000 but having difficulty maintaining their high relative valuations in the future.
To see the analyses by Busch and Sanchez on what’s next for the NASDAQ, watch the video below: