The Return To 1999 For Nasdaq Stocks

In March 2000 when the Nasdaq traded at its all-time highs, the index traded at well over 100 times earnings, and the 10-year yield was 6.66%. As an investor, you could exit a market with record high valuations and get a risk free, nearly 7% return on your money in Treasuries. Today, the Nasdaq has a price/earnings multiple of just 21. And the 10-year yield is a paltry 2%. This dynamic continues to underpin demand and capital flows favoring stocks.