Now with all of the major US stock indices making recent all-time highs the big laggard is the NASDAQ Composite which to date has not broken above the manic bubble peak of 5130 back in March 2000. The NASDAQ Composite is an important bellwether because - more than any other stock group – the NASDAQ represents the New Economy.
The First Boom: The origin was the United States and English speaking countries. Back in 1975 the NASDAQ broke to the upside lead by biotechnology then Intel with the first microprocessor, the PC, the Internet and ending with the dot com bubble in 1999-2000.
The second Echo Boom: This time including all global economies - time frame 2009 + Internet rollout in emerging economies, global cell phone expansion, wireless technology, GPS technology, telecom boom, flash memory and nanotechnology just to name a few advances – add in parallel new themes such as aerospace and the broad health sciences space.
A look at about 20+ years of NASDAQ explains the history.
(A) The last advance of the great 1978 – 2000 1st technology boom confined to English speaking countries
(B)The March 2000 dot com technology bubble
(C) & (D) The first and second modern bear market lows
(E) The emergence of the 2nd technology / health care “echo’ boom.