The Nasdaq Composite Index for the first time in 15 years exceeded 5,000 points
The NASDAQ Composite Index consists of stocks and other financial instruments of more than three hundred companies traded on the NASDAQ exchange, and has been calculated since 1971. It reached its peak at 5048.62 points on March 10, 2000 in the era of the “dot-com bubble”, after which it collapsed by 78%. Since 2003, it began to grow, and on Monday, March 2, 2015, it reached 5008.1 points, a little short of the previous record. By the end of the week he dropped to 4927.37 .
What is it - the revival of high technology or another bubble?
The NASDAQ Composite index in the late 1990s was rapidly growing against the background of investors' mania to buy shares of technology companies, the prices of which were based on views and clicks on websites. In 2000, out of a hundred of the largest companies in the index, sixty-eight had a net profit. Today, 90 out of hundreds of top companies have profits. After reaching a peak of 5048.62 in March 2000, the index fell to 1114.11 points on October 9, 2002. Shares of Cisco, Intel and Microsoft fell by 50%, and many companies lost all or part of the cost. The fashion for investment among private individuals is gone: in 1995-2000, Americans invested $ 1.05 trillion in mutual funds, and over the next 14 years $ 394 billion.
However, there is now a surge in investment in start-ups: private and corporate investors invested $ 47.3 billion in 3,600 young companies in 2014, including several funding stages exceeding $ 500 million. During the “bubble” startups received $ 36.2 billion.
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Investors have a question: is this another “bubble” or a natural growth of the high-tech market?
Zach Weisfield, general manager of Microsoft Ventures Global Acpleators, after a business trip to China, appreciated the market for high-tech companies in this country . Chinese startups need large amounts of investment, as they do not have a developed infrastructure of US scale. In 2014, 107 venture capital deals worth $ 4.66 billion were made in the country, and the number of mergers and acquisitions in the high-tech sector was 851 for $ 47.5 billion. Weisfield is confident that this is a “mania for opening a business”, but not a bubble.
Commenting on the growth of the NASDAQ Composite, Richard Sylla of the Stern School of Business at New York University speaks of the absence of investor insanity that was observed in the late 1990s. Investors have become more cautious and look at payback. Top index companies in most cases make a profit, not clicks on the site. Market investors have become major investors, not private speculators. Dividend payments in 2014 amounted to $ 1.167 trillion - 1,200 of the world's largest companies, including high-tech Apple and Microsoft, received this amount.
Independent business consultant Larry Elton offers two scenarios. The market will continue to grow thanks to venture capitalists if the demand for new applications and technologies grows. Or a new influx of private capital is a sign of another bubble. Which one is correct? Only time will judge.
What is it - the revival of high technology or another bubble?
The NASDAQ Composite index in the late 1990s was rapidly growing against the background of investors' mania to buy shares of technology companies, the prices of which were based on views and clicks on websites. In 2000, out of a hundred of the largest companies in the index, sixty-eight had a net profit. Today, 90 out of hundreds of top companies have profits. After reaching a peak of 5048.62 in March 2000, the index fell to 1114.11 points on October 9, 2002. Shares of Cisco, Intel and Microsoft fell by 50%, and many companies lost all or part of the cost. The fashion for investment among private individuals is gone: in 1995-2000, Americans invested $ 1.05 trillion in mutual funds, and over the next 14 years $ 394 billion.
However, there is now a surge in investment in start-ups: private and corporate investors invested $ 47.3 billion in 3,600 young companies in 2014, including several funding stages exceeding $ 500 million. During the “bubble” startups received $ 36.2 billion.
')
Investors have a question: is this another “bubble” or a natural growth of the high-tech market?
Zach Weisfield, general manager of Microsoft Ventures Global Acpleators, after a business trip to China, appreciated the market for high-tech companies in this country . Chinese startups need large amounts of investment, as they do not have a developed infrastructure of US scale. In 2014, 107 venture capital deals worth $ 4.66 billion were made in the country, and the number of mergers and acquisitions in the high-tech sector was 851 for $ 47.5 billion. Weisfield is confident that this is a “mania for opening a business”, but not a bubble.
Commenting on the growth of the NASDAQ Composite, Richard Sylla of the Stern School of Business at New York University speaks of the absence of investor insanity that was observed in the late 1990s. Investors have become more cautious and look at payback. Top index companies in most cases make a profit, not clicks on the site. Market investors have become major investors, not private speculators. Dividend payments in 2014 amounted to $ 1.167 trillion - 1,200 of the world's largest companies, including high-tech Apple and Microsoft, received this amount.
Independent business consultant Larry Elton offers two scenarios. The market will continue to grow thanks to venture capitalists if the demand for new applications and technologies grows. Or a new influx of private capital is a sign of another bubble. Which one is correct? Only time will judge.
Source: https://habr.com/ru/post/286470/
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