Nasdaq 6,000: a new bubble?

The Nasdaq Composite index, Wall Street’s technology-heavy market, has hit 6,000. But it looks a lot more stable than it did when it hit 5,000 17 years ago.

Round numbers on the Nasdaq Composite index, Wall Street's technology-heavy market, often make investors nervous. Shortly after it hit 5,000 in early 2000, it plunged by 80%. In 2015, it finally regained the 5,000 mark and has now eclipsed 6,000. Considering the index took 17 years to go from 5,000 to 6,000, "it has not been a great investment", notes John Authers on FT.com: the annualised return was barely above 1%.

There was money to be made by careful stock pickers over this timespan: 315 stocks have lost 90% or more of their value, but 125 have gained 1,000% or more. Interestingly, the two biggest winners aren't tech firms. Soft-drink maker Monster Beverage takes the top spot with returns of 40% a year. The next-best performer was Middleby, an oven manufacturer that bought Britain's Aga in 2015.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.