No bubble in sight as Nasdaq nears its 15-year-old peak

Analysts say Fed's rate policy, incubation of startups before IPO and Apple's rise underpin rally

New York

AS the technology-heavy Nasdaq Composite Index closes in on the all-time high it reached in March 2000, investors are facing a market that barely resembles the go-go era of 15 years ago.

Valuations, as measured by what investors are willing to pay for the last 12 months of earnings, are an eighth of what they were at the peak of the dotcom bubble, when the Nasdaq hit an intraday record of 5,132 before falling more than 63 per cent in 12 months.

Dividend investors, too, now routinely hold large positions in technology companies such as Microsoft, Cisco and Oracle, a decision unthinkable in the growth-focused days of 2000 but now common thanks to mountains of corporate cash and changes in...

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