The Nasdaq’s march back up to 5000 has been slow but steady, driven by growth in earnings and dividend payments of its companies. Although the index’s rise is nowhere near as rapid as it was in 2000, its gains are viewed as likely less ephemeral and bearing less risk for shareholders. Nasdaq companies collectively fetched 189.75 times their earnings over the previous year in March 2000, according to Nasdaq—versus 31.96 today.
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