Another Tech Bubble? Here's What You Must Know Today...

Nasdaq 5k, please go away... March 3, 2015 Archives | Unsubscribe     Another Tech Bubble? Here's What You Must Know Today...   Nasdaq 5k, please go away Fifteen years to freedom Plus: Flying in bad weather   Greg Guenthner coming to you from Baltimore, MD... Run for your life! Just remember to dump your tech stocks first. The Nasdaq's hitting 5,000 again. And we all know what happened the last time that occurred 15 years ago. Does the term "bursting of the dot-com bubble" ring a bell? So your questions today are: Are we due for an encore performance? Is the tech bubble about to explode all over again? Serious questions. And today you're getting serious answers, my friend... Make no mistake: the prospect of Nasdaq 5,000 is sending icy chills down the spines of many investors. They think its smoking-gun proof of a new bubble. Never mind the S&P 500 and Dow Jones both blew past their own all-time highs two years ago. And last time I checked, they're still going strong. Just sayin'. But for some reason, investors think the Nasdaq is conjuring up fears of another dot-com disaster. So should you worry about Nasdaq 5,000? Nah... Look, you know I'm not a fan of the mainstream financial press. But it's hard to argue with the Wall Street Journal when it says, "It's not unprecedented for an index to take more than a decade to reclaim a previous high. The Dow Jones Industrial Average and S&P 500 each took 25 years to reach their heights of the 1929 boom, a span that included the Great Depression, World War II and the Korean War." In other words, relax, my friend. This is normal. And if you fear the Nasdaq is getting a little too big for its britches again, I can also point out that valuations are nowhere near the wild and wooly highs of the 2000 tech bubble... Only an idiot would say there aren't any expensive stocks out there right now. But if you look at the top Nasdaq stocks from year 2000 vs. today, it's easy to see why the comparison falls way short. Hell, back in 2000, Yahoo! shares were trading with a P/E ratio of 418! That makes today's Facebook seemingly laughable P/E ratio (approaching 75) look like a steal. Bottom line: new highs are nothing to worry about--especially with a 15-year break in-between.         Congress did WHAT?   When I heard 84 members of Congress stuffed their money into the exact same investment, without planning it, I almost fell off my chair. Since when does Congress agree on anything?   Yet 38 Democrats and 45 Republicans are rumored to have poured millions into this one vehicle.   I urge you to take a look at this unusual strategy before something changes. You'll be shocked to discover what the government is up to behind your back. Click here.           Rude Numbers Targets, Predictions and Wild Guesses   $1,206 is where you'll find gold futures this morning. The yellow metal remains stuck near the $1,200 mark this week. It's down about a buck to start the day... $2.65 is the price of copper this morning. Dr. Copper is out sick today. The metal is down more than 1.6% in early trading... $49.80 is the price of oil right now. Crude is magnetized to the $50 mark lately. It's up just 21 cents to begin the trading day... $2.67 is the price of natural gas. Natty has yet to find its mojo this week. It's down another 1% today... 2,109 marks the spot for S&P futures before the morning bell. Stocks are looking to open slightly lower to start the session...     Rude Trends When to Buy... When to Sell   "You made an interesting but somewhat unrealistic comparison in your Feb. 23 article," comments a reader. "First of all, a study from back in 1954 is somewhat suspect since instrument flight training and flying has advanced light years from how it was back in those days. "I began flight training back in the late 50's and was flying for an airline by 1964 in a DC-3. And when I retired in 1998 I can claim without a doubt that instrument flying had become pretty routine by then. I am not saying that occasionally some under-trained or underqualified pilot screws up and crashes, but overall hundreds of thousands of flights (and not just airlines) operate every year without an accident. Most pilots flying today are the best there is anywhere." Sure, I can't disagree with the fact that flight has advanced dramatically since the 50s. But you're talking about professional, commercial pilots. I think the analogy my pal Jonas was focused more on the hobbyist flying a Cessna. I'll let you know if he disagrees. Even so, the lesson remains the same: As a trader, you should always expect bad weather - and listen to your technical analysis "instruments" when they're blinking red... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   [Revealed] Confessions of an Ex-IRS Hit Man Why Is the Government Preparing for Catastrophe? [must read] Get Paid $12,250 Each and Every Month?     BE SURE TO ADD rude@agorafinancial.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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