Friday, November 28, 2008

Is the Naz the new Dow?

Stopped by Fred Wilson's place this morning and caught up with his interesting comparison of Dow then (1924-39) and Nasdaq now. Here are a couple of clips:

One of the things I've been saying recently on this blog is that the Dow is full of tired companies and tired stocks. I think the Nasdaq is much more representative of the current american economy than the Dow.

If the Nasdaq is the new Dow, and it sure seems like it is on many levels, then this would mean the Nasdaq will trade in the range of 1300 to 2000 for the next seven years and will retest last friday's lows at least once more before starting a slow but steady climb sometime around 2012.

It also means that the Nasdaq isn't going much lower from here.

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