Tech stocks skyward


It’s hard not to be impressed by the soaring rally in tech stocks this year.

The shares of Facebook (FB), Amazon (AMZN) and Apple (AAPL) are up more than 30% in 2017 as of June 8.

Apple, now worth a cool $800 billion, could cross the $1 trillion threshold in market capitalization in 2018, according to one analyst’s forecast.

 

tech stocks

 

Dot.com Era

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.

 

 

tech-stocks

Source: Bespoke Investment Group

 

Stratospheric

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%.

 

tech-stocks

Source: Bespoke Investment Group

 

 

Takeaway

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.

Photo Credit: WILL POWER via Flickr Creative Commons

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Xavier Brenner
Xavier Brenner
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.