It’s hard not to be impressed by the soaring rally in tech stocks this year.
Apple, now worth a cool $800 billion, could cross the $1 trillion threshold in market capitalization in 2018, according to one analyst’s forecast.
Another way to put all this in perspective is to look at how this tech rally stacks up against sector’s monster run back in the late-1990s.
The tech-laden Nasdaq 100 is actually 25% higher than its Dot Com bubble peak hit on March 27th, 2000, according to a smart analysis by research firm Bespoke Investment Group.
Go back to 1990, and it’s clear tech stocks have dramatically outperformed the broader S&P 500 Index.
The Nasdaq 100 is up a remarkable 2,478% from 1990 through June 7, while the S&P 500 advanced 576%.
I think the mother of tech rallies will come to an end someday.
And it’s worth remembering how painful the dot.com bust was in the early 2000s.
That said, take a moment, and marvel at the performance of tech stocks in recent years.
It has truly been a rally for the ages.
- Xavier Brenner has covered global market, business and economic trends for Interactive Brokers Asset Management since 2013. An experienced financial journalist, Brenner offers analysis and insights on the stories that matter to the discerning investor.