The Nasdaq also sports an easier-to-digest valuation today than it did in the days leading up to the bursting of the tech bubble. The Nasdaq is far cheaper today than it was in the late 1990s or earlier this century. When the bubble was at its biggest, the index had a price-to-earnings ratio of 194 compared to under 24 today. [Nasdaq’s Evolution Could Encourage New Highs]
QQQ had a P/E of 18.6 at the end of third quarter, according to PowerShares data. The First Trust NASDAQ-100 Ex-Technology Sector Index Fund (NasdaqGS: QQXT), which excludes technology stocks in favor of higher weights to discretionary and health care, had a P/E of 23.2 at the end of November. [Take the Nasdaq, Leave the Tech]
PowerShares QQQ
Tom Lydon’s clients own shares of Apple and QQQ.