Savvy Trades and Investments

[wadegarret]

Anyone remember the Nasdaq in March 2000 ?

It was around 4800, and the Dow was 11000. The ratio of the dow to the nasdaq was around 2.3 to 1. The Nasdaq made its highs in March of 2000, and then fell 60% over the next six months.

Right now the Nasaq is 12200 and the Dow around 29800. The ratio of dow to the nasdaq is 2.44 to 1. If PEs in the Dow have remained in the same ratio to PEs in the Nasdaq today as they were in early 2000, then we are near a bubble top right now IMO. Of course both the Dow and Nasdaq could go up further and still remain in a 2.4 to 1 ratio, so that is possible. However being there in 2000 and now again in 2020, I would have to say there are more similarities to these two times than any other in my stock market experience.