NASDAQ update (March 8, 2014):NASDAQ created a double bottom (blue line) in around 2008, and has since then been in an uptrend. Given the good performance of stocks like Apple, Google etc the index got propelled higher. With no weakness in sight (technically) it looks ready to at least reach the previous high of 5,000 (red line) it last achieved during the dot-com bubble of 2008.
However, this time we do have a clear difference compared to the year 2000. The P/E Ratio at that time was above 40x while this time according to sources it is below 20x. So there is a clear difference in valuation multiples.
If companies can churn out earnings growth then ‘this time it could be different’ and the rally could survive.