Here’s why Nasdaq 5000 should spook you

Fortune

The market is scarier than it looks.

On Monday, the Nasdaq Composite index hit 5000 for the first time since March 9, 2000. The number invoked the ghost of tech bubble’s past, most specifically the dot-com one. Back in 2000, the technology-heavy Nasdaq hovered above 5000 for just two days. After that, it plunged 75%.

But on Monday, commentators brushed away concerns that we might soon see a repeat of that rout. They argue that the Nasdaq is not really as high as it was back then, not when you adjust for inflation. Do that and the Nasdaq would have to rise another 2,000 points to 7,000 to be worth as much as it was back in 2000. Also, the composition of the Nasdaq has changed. The companies included in the index are more stable than they once were. No Pets.com here. The average company in the Nasdaq has now…

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