Beauty of big tech stocks is in the eye of the beholder

Investing is really a search for relative value - the exchange of one over-valued asset for another under-valued asset.  With that in mind, our latest Chart Room takes a comparative look at the long run up in the Nasdaq 100 index. 

The Nasdaq 100, dominated by large cap tech firms led by the FAANGS, has trounced nearly every global index over the last few years. In fact it is now catching up against the S&P 500 in terms of relative price performance vs. the last peak in the 1999-2000 tech bubble.  It has already blown past this previous peak when compared with the broader MSCI All Country World (ex USA). But when measured against the sparkling rally in gold prices (especially when measured in currencies other than the US dollar), the Nasdaq 100 has a long way to go to recapture its 2000 lustre. Beauty, after all, lies in the eye of the beholder.