The Nasdaq composite closed above 5,000 just two times in March of 2000. At the risk of uttering the four most terrifying words for investors, analysts say, "It's different this time." This Nasdaq 5,000 has legs.
"The fact that it hasn't been at that level in 15 years means that it should offer some resistance," said Mark Newton, chief technical analyst at Greywolf Execution Partners. But beyond psychological resistance, he explained, "I don't see any issue with the 5,000 level."
"It was euphoria that took you there back then," argued Brian Klatsky, sector head of Nasdaq trading at Knight Capital Group, now known as KCG. This time, the 17-year trading veteran hasn't seen retail investors become enthralled with the tech sector—except for biotech.
"You do see doctors and wealthy retail investors who think they have a little edge on the science," he observed. "The money comes in to chase what could be the next-best science, rather than the next-best business models."